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 on Thursday. An improving trading volume also sent its 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 exponential moving averages (EMAs) supported by a positive reading of the relative strength index, 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 86 sen, below the 20-day EMA,” Rakuten said.

Rakuten said that fundamentally, it likes MN Holdings being a strong proxy to capitalise on Malaysia as a prime destination amid the expanding data centre industry.

“As of May 29, its substantial order book of RM447.6 million (2.7 times revenue for the financial year ended June 30, 2023) will keep the group busy for the next two years.

“Additionally, it has tendered for projects with a total value of RM820.4 million, 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,” Rakuten said.