Dear friends of i3 forum,

Two research houses are very bullish on Mn holdings while none recommended Hexcap which owns 49% of Transgrid Ventures

We have been told, "Look beyond the obvious to see deeper"

Yes. By the law of average when everyone is bullish the stock is already priced in

So we can expect average performance since price has already run up alot

So we MUST FIND THAT UNDERVALUE BARGAIN where few people have yet to pay attention & no Research house is bullish yet

So we Will Compare Laggard Hexcap with popular Mn holdings

Let us see

KUALA LUMPUR (June 7): Hong Leong Investment Bank (HLIB) has initiated coverage of MN Holdings Bhd (KL:MNHLDG) with a 'buy' rating at 77 sen, and with a target price of RM1.12, based on an 18 times price-earnings ratio for earnings for the financial year ending June 30, 2025 (FY2025).

In a note on Friday, the research house said the group’s strong track record in serving Tenaga Nasional Bhd or TNB (KL:TENAGA), data centre owners, and solar engineering, procurement, construction and commissioning (EPCC) contractors positions it as a strong contender for upcoming power infrastructure projects.

“With a robust order book valued at RM447.5 million, we project MN Holdings’ FY2023-25 core profit after tax to register a strong compound annual growth rate of 32.8%.

MN Holdings (MNHLDG MK) - Another Record Year in the Making

Publish date: Thu, 05 Dec 2024, 10:31 AM

1QFY25 was off to a strong start

MN Holdings (MN) posted revenue of RM103m (+87% YoY) and core net profit of RM10m (+155% YoY) in 1QFY25, alongside 1ppts in EBITDA margin. The group secured RM315m of new orders in FY25, bringing the outstanding order book to RM601m, translating to a strong 2.4x cover on FY24 revenue. The order book mainly consists of orders from DC (48%), TNB (31%), solar (4%), water sewerage (4%), and others (10%). The solid order book is expected to sustain earnings growth momentum in FY25E (+65% YoY).

Record-high tender book signals promising prospects ahead

The group’s record-high tender book of RM1.2bn (+20% QoQ) as of Nov24 reaffirms our positive outlook on MN. TNB-related projects form the largest portion at 43%, recently approved under TNB Green Lane Pathway specifically for data centres (DC), followed by Sarawak Energy (31%). The remaining tender books are diversified across industries, including solar (9%), DC (5%), water sewerage (3%), and others (10%). We noted that MN has excluded bids where it holds the priority of first right refusals with key clients, potentially adding another c.RM300m (25%) to its tender book. The expected tender results to be announced in 1HCY25 include Sarawak Energy and several utility infrastructure work packages for two main DC clients. With its record-high tender book, we believe MN is on track for FY25, surpassing FY24 new contract wins of RM349m.

Maintain BUY with TP of RM1.20

We reiterate our BUY rating and RM1.20 target price, pegged to 20x PE multiple on fully diluted CY25 EPS. We like MN as a proxy for Malaysia’s expanding power infrastructure and strategic exposure in the rapidly growing DC and solar sectors. Key risks to our BUY call include slower-than-expected project rollouts affecting order book replenishment and unforeseen delays.

Source: Philip Capital Research - 5 Dec 2024

FOR IMMEDIATE RELEASE

HEXTAR CAPITAL BERHAD (FORMERLY KNOWN AS OPCOM HOLDINGS BERHAD) REPORTS POSITIVE

EBITDA OF RM23.7 MILLION FOR FYE 2024 AMID STRATEGIC DIVERSIFICATION

Shah Alam, 29 November 2024: HEXTAR CAPITAL BERHAD (formerly known as Opcom Holdings Berhad)

(“HCB” or the “Company”) reported a positive Earnings Before Interest, Taxes, Depreciation, and

Amortization(“EBITDA”) of RM23.7 million for the financial year ending 2024 (“FYE 2024”) on the back

of a consolidated revenue of RM117.7 million for the year. However, after accounting adjustments and

goodwill impairments, HCB recorded a loss before tax of RM3.1 million and a loss after tax of RM3.5

million.

The loss recorded for FYE 2024 was due mainly to accounting adjustments and goodwill impairments,

including amortization of intangible assets amounting to RM26.2 million, goodwill impairment of RM3.1

million, and unwinding of interest expenses on deferred consideration totaling RM3.2 million. Excluding

these non-cash adjustments, HCB would have achieved a profit before tax of RM29.4 million.

The Group’s strategic investments in Transgrid Ventures Sdn. Bhd. and the additional 6.75% stake in

Binasat Communications Berhad have continued to yield positive returns. Year-to-date, contributions to

profits from these associates amounted to RM8.5 million, reflecting their strong performance and

alignment with the Group’s strategic goals.

Since diversifying into the construction and project management segment, HCB has through its whollyowned subsidiary, T & J Engineering Sdn. Bhd. commenced the RM97.0 million Universiti Malaysia

Kelantan (“UMK”) student hostel project in Bachok where T & J Engineering Sdn. Bhd. is to supply

materials, labour, tools and equipment for the execution of civil and structural, architectural and

mechanical works. This project has progressed on schedule, reinforcing the Group’s capability to deliver

infrastructure projects and strengthening its presence in the construction sector. The successful

execution of this project is expected to pave the way for future opportunities in this growing segment.

Commenting on the Group’s performance, Johnson Chang, Managing Director of HCB, stated: “Despite

the adjustments and impairments recorded during this financial year, our positive EBITDA and operating

income demonstrate the resilience of our core operations. These results reinforce the strength of our

business model and the effectiveness of our diversification strategy.

The Group’s strategic investments in Transgrid Ventures Sdn. Bhd. and the additional 6.75% stake in

Binasat Communications Berhad have continued to yield positive returns.

Year-to-date, contributions to

profits from these associates amounted to RM8.5 million,