Bullish sentiment towards electrical utilities datacenter spreading downwards, MN Holdings, KJTS are popular.

Datacenter concept stocks are hot, this wave of bullish trends has already spread to lower levels. Yesterday, they received a 0.136 billion ringgit datacenter contract. $MNHLDG (0245.MY)$and are expected to secure related contracts, $KJTS (0293.MY)$being highlighted by brokerage firms today.

$MNHLDG (0245.MY)$Yesterday (Wednesday) announced that they secured a 0.13624 billion ringgit contract, responsible for providing Construction Landing Station (CLS) services and other architecture engineering for datacenters, boosting morale in the relevant contracting fields.

MN Holdings' order hits a new high.

Fenglong analysts believe that this contract will $MNHLDG (0245.MY)$push the order volume for the 2025 fiscal year to a historical high of 5.68 billion ringgit.

The report further states that there are indications that this datacenter operator plans to build new facilities in Johor.

“ $MNHLDG (0245.MY)$Having always constructed CLS and underground pipelines for this client, we believe that this company will be a pioneer for future projects.

Another company that has secured a potential datacenter contract is $KJTS (0293.MY)$, this company focuses on refrigeration energy technology. After meeting with analysts and management from Ioit, the company is confident in securing the datacenter contract.

Vowing to win the refrigeration contract

“ $KJTS (0293.MY)$ Confident in securing 1-2 large contracts for datacenter architecture engineering projects for cooling energy systems. Obtaining any related contracts is like a stepping stone to datacenter-related projects.

Analysts believe that as Malaysia gradually becomes the third largest datacenter market in Asia, industrial-related companies will also benefit from it.

$KJTS (0293.MY)$In January this year, the initial public offering was priced at 27 cents, and the stock price has since risen by 194%; while $MNHLDG (0245.MY)$The stock price has also risen by 78% this year.

Two investment banks are bullish on the related companies, both giving a 'buy' rating. Fenglong Investment Bank has raised the target price from 1.15 ringgit to 1.55 ringgit. $MNHLDG (0245.MY)$Lianchang International analysts also

raising their target price. $KJTS (0293.MY)$The target price has been raised from 82 cents to 92 cents.

Datacenter prime location

Further, Fenglong Investment Bank analysts pointed out that as a prime location for data centers, more data center contracts continue to arrive.

He explained that Malaysia's inexpensive electrical utilities and land costs, coupled with its advantageous geographical location near Singapore, along with government support, have attracted a large number of data center operators to Malaysia, gradually making it a hot spot for data center investments.

"As of April 2024, $TENAGA (5347.MY)$Supply of 11 data centers totaling 1.15 gigawatts has been completed, with 74 power supply applications received, surpassing a total demand of over 11 gigawatts.

🔗 View the full articleClick to read the full report.