22 September 2025 — RHB Research has thrown fresh attention on two Bursa Malaysia counters — MN Holdings Bhd and Southern Cable Group Bhd — suggesting both stocks are in bullish territory after recent technical breakouts, but warning investors to watch certain support levels for signs of potential correction.
MN Holdings: New Highs, Eyeing Further Gains
MN Holdings has captured interest from analysts after breaking through its resistance level at RM1.75 on strong volume. The stock recently closed with a fresh “higher high” on the candlestick chart, which signals that the bullish setup remains intact. According to RHB, this momentum could carry MN Holdings higher, with targets at RM1.85, followed by RM1.90.
However, RHB notes that if the stock falls below RM1.70, the current bullish pattern could be invalidated and may trigger a pullback. The strength in MN Holdings is broadly supported by positive earnings surprises in its fiscal year 2025, a sizeable outstanding order book, and strong demand in its engineering services, especially related to power infrastructure. Analysts believe that new contracts and project wins, especially involving utilities and substations, offer good visibility for earnings growth in the quarters ahead.
Southern Cable: Consolidation Under Pressure, Breakout on the Cards
Southern Cable has spent recent trading sessions consolidating just below the RM2.15 resistance level. RHB points out that its 21-day simple moving average (SMA) is trending upward, suggesting strengthening momentum. If the stock can break above RM2.15, the next resistance levels to watch are around RM2.25 and RM2.35.
On the flip side, a decisive move below RM2.05 would raise warning flags, as it could signal the start of a correction phase. The technical setup is seen as favorable as long as the sideways consolidation holds and volume supports upward bids. Southern Cable’s recent financials have also shown strong performance: net profit more than doubled year-on-year in its second quarter, backed by increased sales volume and a more favourable product mix.
Analyst Views & Market Context
Both stocks are viewed favorably by analysts because they tap into themes of rising demand for power infrastructure and electrical cables, which are in turn underpinned by growth in utilities, data centres, industrial infrastructure, and construction. For MN Holdings, its engineering and substation works fit well with national grid expansion. For Southern Cable, demand for medium-voltage cables, better export orders, and a stronger product mix are pushing its profitability higher.
That said, both stocks come with risk. Technical levels are critical: failing to sustain support around RM1.70 for MN Holdings, or RM2.05 for Southern Cable, may lead to downside pressure. Also, macroeconomic headwinds — such as raw material cost increases, currency movements, and policy/regulatory uncertainties — could affect margins or lead times.
