MN Holdings Bhd has tripled since it fell to a 52-week low of 25 sen in August last year.

The counter touched its high of 76 sen recently and poised for further upside as it has gone above the 70 sen resistance level.

Towards the upside, near-term resistance level is seen at 80 sen, followed by 85 sen.

MNH closed at 74 sen on May 13.

There are a lot of positives on the company which provides underground utilities engineering services and solutions and substation engineering services and solutions. 

The company's customers are primarily contractors for power projects, property developers and industries that require its services and solutions to enable the supply of power to specific locations and premises.

It was in the limelight last month when MNH said it has secured a contract worth RM25.96 million from Samaiden Group Bhd.

The job was for the engineering, procurement, construction and commissioning work for a large-scale solar photovoltaic plant in Kulim, Kedah.

The contract involves establishing new step-up station interconnection facilities for the large-scale solar substation.

It will also extend one bay of 132kV interconnection facilities at the existing 132kV NUR Power Station for NUR Renewables Sdn Bhd.

Previously, MNH secured two substation engineering contracts worth RM29.3 million from Tenaga Nasional Bhd.

Investors should also be excited that it is indirectly benefiting from the data centre play.

The company wond an underground cable contract worth RM13.5 million from a customer that provides data centre services.

With these wins, MNH’s order book increased to RM444.5 million, which is expected to have a positive effect on its earnings over the next two to three financial years.

With the recent open bidding for the fifth round of the LSS programme offering a total generation quota of 2,000MW, there should be more substation engineering projects to be up for grabs.

For the financial quarter ended Dec 31, 2023 (2QFY2024), the company posted a 51% jump in net profit to RM3.92 million from RM2.58 million a year earlier. 

Its quarterly revenue was up 82.7% year-on-year to RM74.92 million from RM41 million, mainly due to increased construction activities within the substation engineering segment.

What’s not to like for a company that has exposure in the booming solar energy and data centre businesses?