[%SIAt%]
Research by TA
Buy – TP RM0.55

“Tailwind from Another Offshore Substation Project"

MHB has secured a second subcontract for an OSS HVDC platform worth In RM1.5bn. The project’s duration is approximately 36 months and is estimated to generate RM15.0mn PBT throughout the contract period. We are cautiously optimistic about the job win as it provides the group with valuable experience in the OSS segment. However, MHB may face challenges in the form of execution risks and cost overruns. No change to our earnings forecasts. Following the recent weakness in its share price, MHB is upgraded to Buy with an unchanged TP of RM0.55/share pegged to 0.65x CY25 P/B ratio.

Analyst:
Ong Tze Hern 
[%KDxT%]

$KLSE-MHB
Research by TA
Buy – TP RM0.55

“Tailwind from Another Offshore Substation Project"

MHB has secured a second subcontract for an OSS HVDC platform worth In RM1.5bn. The project’s duration is approximately 36 months and is estimated to generate RM15.0mn PBT throughout the contract period. We are cautiously optimistic about the job win as it provides the group with valuable experience in the OSS segment. However, MHB may face challenges in the form of execution risks and cost overruns. No change to our earnings forecasts. Following the recent weakness in its share price, MHB is upgraded to Buy with an unchanged TP of RM0.55/share pegged to 0.65x CY25 P/B ratio.

Analyst:
Ong Tze Hern 
thong@ta.com.my

$MHB / 5186 (MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD)