MN Holdings is back on the radar, says Rakuten Trade

KUALA LUMPUR (June 28): Rakuten Trade said MN Holdings Bhd (KL: MNHLDG) is back on the radar after it pushed out from the bullish flag pattern with a long white candle yesterday. Improving trading volume also sent share price to hit a new all-time high, suggesting the bullish momentum is picking up.

In a technical view note on Friday, the research house said that in view of the rising EMAs supported by the positive reading in RSI, a positive outlook is expected in the near term.

“We expect the rising momentum to steer the stock higher and test the next level of resistance of RM1.03 (R1) and RM1.12 (R2) in the near term.

“On the downside, stop-loss is set at RM0.86, below the 20-day exponential moving average,” it said.

Rakuten said that fundamentally, it likes MN Holding being a strong proxy to capitalize on Malaysia as a prime destination amidst the expanding data center industry.

“As of May 29, 2024, its substantial order book of RM447.6 million (2.7x FY23 revenue) will keep the group busy for the next two years.

“Additionally, it has tendered for projects with a total value of RM820.4m, comprising of 75% substation engineering and 25% underground utilities engineering.

“Given the robust order book and ample replenishment opportunities, we anticipate strong earnings growth for MN Holdings,” it said.