Greetings, fellow investors and market watchers! Today, we’re diving deep into the latest financial performance of MN HOLDINGS BERHAD (MNHB), a key player in Malaysia’s energy infrastructure. Their recently released interim financial report for the quarter and year-to-date ended 31 March 2025 paints a picture of robust growth and strategic expansion.
MNHB has delivered an impressive financial quarter, showcasing significant revenue and profit surges, primarily driven by their core engineering segments. This strong showing is further underscored by the announcement of a second interim dividend, reflecting the company’s commitment to shareholder returns. Let’s break down the numbers and see what’s powering MNHB’s ascent!
Q3 2025 Performance: A Surge in Growth
MNHB’s third quarter (3Q2025) results demonstrate remarkable year-on-year growth, signaling strong operational momentum.
3Q2025 (Reporting Period)
Revenue: RM127.42 million
Profit Before Tax (PBT): RM22.62 million
Profit After Tax (PAT): RM16.69 million
Basic Earnings Per Share: 3.01 sen
3Q2024 (Comparison Period)
Revenue: RM51.11 million
Profit Before Tax (PBT): RM6.58 million
Profit After Tax (PAT): RM4.84 million
Basic Earnings Per Share: 1.12 sen
Revenue for 3Q2025 soared by 149% to RM127.42 million from RM51.11 million in 3Q2024. This significant increase was primarily fueled by a 248% surge in the substation engineering segment, which contributed RM97.09 million compared to RM27.91 million in the previous corresponding quarter. The accelerated progress of major construction projects within both the underground utilities engineering and substation engineering segments was a key driver.
Profit Before Tax (PBT) witnessed an impressive 244% jump, reaching RM22.62 million from RM6.58 million. Similarly, Profit After Tax (PAT) climbed by 245% to RM16.69 million from RM4.84 million. Basic earnings per share more than doubled, increasing from 1.12 sen to 3.01 sen.
Year-to-Date Performance: Sustained Momentum
For the nine-month period ended 31 March 2025, MNHB continued its strong growth trajectory.
YTD 31 March 2025 (Reporting Period)
Revenue: RM356.01 million
Profit Before Tax (PBT): RM49.83 million
Profit After Tax (PAT): RM36.42 million
Basic Earnings Per Share: 7.20 sen
YTD 31 March 2024 (Comparison Period)
Revenue: RM181.18 million
Profit Before Tax (PBT): RM17.83 million
Profit After Tax (PAT): RM13.03 million
Basic Earnings Per Share: 3.09 sen
Year-to-date revenue grew by 96% to RM356.01 million, up from RM181.18 million in the same period last year. The substation engineering segment again led the charge, contributing 59% of total revenue and growing by 98% to RM211.19 million.
PBT for the nine-month period surged by 179% to RM49.83 million, while PAT increased by 180% to RM36.42 million. This substantial profit growth was primarily driven by a significant increase in gross profit, from RM35.49 million to RM77.28 million, an increase of RM41.79 million. Basic earnings per share for the year-to-date period improved from 3.09 sen to 7.20 sen.
Quarter-on-Quarter Snapshot: Steady Progress
Comparing 3Q2025 with the immediate preceding quarter (2Q2025) also shows continued positive trends:
3Q2025 (Current Quarter)
Revenue: RM127.42 million
Profit Before Tax (PBT): RM22.62 million
Profit After Tax (PAT): RM16.69 million
2Q2025 (Preceding Quarter)
Revenue: RM125.48 million
Profit Before Tax (PBT): RM17.32 million
Profit After Tax (PAT): RM12.69 million
Revenue saw a modest but positive 2% increase quarter-on-quarter, reaching RM127.42 million. PBT and PAT both improved by 31%, demonstrating enhanced profitability despite consistent revenue. This was largely attributed to the higher gross margins delivered by major projects within the substation engineering segment.
Strengthening Financial Position and Cash Flow
Beyond the income statement, MNHB’s balance sheet and cash flow statements also reflect a healthy and growing financial position.
| Financial Metric | As at 31 March 2025 (RM’000) | As at 30 June 2024 (RM’000) |
|---|---|---|
| Total Assets | 284,138 | 206,216 |
| Total Equity | 177,925 | 118,353 |
| Net Assets Per Share (RM) | 0.32 | 0.25 |
Total assets grew significantly from RM206.22 million as of 30 June 2024 to RM284.14 million as of 31 March 2025, indicating strong asset base expansion. Total equity also saw a substantial increase from RM118.35 million to RM177.93 million, reflecting improved shareholder value and retained earnings. Net assets per share increased from RM0.25 to RM0.32.
From a cash flow perspective, the Group generated RM12.28 million in net cash from operating activities for the year-to-date period ended 31 March 2025, a healthy increase from RM4.42 million in the previous corresponding period. This indicates strong operational cash generation capabilities.
Outlook and Strategic Positioning
MNHB’s future prospects appear bright, underpinned by robust demand in critical sectors and strategic alignment with national development plans.
The company is strategically positioned to capitalize on the robust demand from Malaysia’s rapidly expanding data centre, renewable energy (RE), and transmission sectors. The commissioning of 18 data centers (1.9 GW) under the Green Lane Pathway, with an additional 20 projects (over 4.0 GW) in the pipeline, highlights the critical need for reliable power infrastructure solutions, an area where MNHB excels.
Furthermore, Malaysia’s strong emphasis on sustainable energy, supported by initiatives like the Green Electricity Tariff (GET), Renewable Energy Certificates (RECs), and Corporate Renewable Energy Supply Scheme (CRESS), provides significant corporate-level incentives for RE adoption. This aligns perfectly with MNHB’s expertise in the power sector.
Tenaga Nasional Berhad’s (TNB) substantial capital expenditure of RM42.8 billion under the Fourth Regulatory Period (RP4), with a significant portion earmarked for RE, National Energy Transition Roadmap (NETR), and cross-border interconnection projects, offers a favorable environment for engineering service providers like MNHB.
The Group’s total order book currently stands at a healthy RM1,097 million, providing stable earnings visibility for the next few financial years. MNHB is committed to delivering long-term value through operational excellence and strategic project execution, with plans to further capitalize on opportunities in the power, sewerage, and gas sectors.
Dividends: Returning Value to Shareholders
In a positive move for shareholders, MNHB announced a second interim single tier dividend of 0.10 sen per ordinary share for the financial year ending 30 June 2025, amounting to RM0.58 million. This dividend is payable on 10 July 2025 to shareholders on record by 16 June 2025. This follows an earlier interim dividend of 0.15 sen per ordinary share declared on 25 November 2024 and paid on 22 January 2025.
Summary and
MN Holdings Berhad has delivered an exceptionally strong performance for the quarter and year-to-date ended 31 March 2025, characterized by significant revenue and profit growth. The company’s strategic focus on the booming data center and renewable energy sectors, coupled with substantial infrastructure spending by key industry players like TNB, positions it favorably for continued expansion. The healthy order book provides a clear runway for future earnings. While the report highlights strong operational execution and a solid financial footing, potential considerations include managing increased administrative expenses and the impact of non-deductible expenses on the effective tax rate.
Key positive factors from this financial report include:
- Robust revenue growth, particularly from the substation engineering segment.
- Substantial increase in profit before tax and profit after tax, indicating improved profitability.
- A strong balance sheet with growing total assets and equity.
- Healthy cash flow generated from operating activities.
- A significant order book providing future earnings visibility.
- Strategic alignment with national energy infrastructure development and renewable energy initiatives.
- Consistent dividend payouts demonstrating a commitment to shareholder returns.
In my professional view, MNHB’s latest report reflects a company effectively navigating and capitalizing on the opportunities within Malaysia’s dynamic energy infrastructure landscape. Their strategic investments and strong project execution capabilities are clearly translating into impressive financial results.
What are your thoughts on MNHB’s latest performance? Do you believe the company can maintain this impressive growth trajectory amidst evolving energy demands and competitive pressures? Share your insights in the comments section below!
