PETALING JAYA: Southern Score Builders Bhd
’s earnings trajectory is expected to strengthen following the award of a new data-centre construction mandate.
The contract, secured this week, extended the company’s run of wins in its current financial year and positioned it for further replenishment momentum as major technology-related projects continued to flow into Malaysia.
According to Phillip Capital Research, the win could deepen the group’s foothold in a structurally expanding segment.
“Inclusive of this latest win, year-to-date contract wins have reached RM235mil, representing 21% of our 2026 replenishment assumption of RM1.1bil,” it said.
The research house said the achievement increased the company’s outstanding order book to RM1.6bil, translating to 7.2 times 2025 revenue cover.
It added that assuming a 15% net profit margin, the project is estimated to contribute RM14.6mil over the contract period.
Southern Score announced that it had clinched a sizeable data-centre package from a repeat multinational client, reaffirming the group’s rising credibility within the regional hyperscale supply chain.
The award, according to the research house, elevated the group’s prospects by reinforcing its ability to capture higher-value industrial and digital-infrastructure works, which had been expanding rapidly as operators accelerated capacity rollouts.
“This job marks the group’s first data centre win in 2026, bringing its data centre order book to RM300mil or 19% of its order book,” it said.
Phillip Capital Research highlighted that securing this project served as a strong testament to the group’s track record in delivering data centre projects.
It noted that overall, replenishment prospects remained healthy, supported by a diversified RM702mil tender book, comprising data centre (29%), residential (36%), and government-related buildings (36%).
It said the strong order-book visibility provided room for earnings delivery over the medium term, particularly as construction progress on several key projects was expected to accelerate in the second half of the financial year.
It also viewed Southern Score’s increasing exposure to data-centre contracts as strategically positive, given rising investment commitments from cloud-service providers.
It maintained its “buy” call on the stock with a target price of 75 sen, citing better-than-anticipated replenishment pathways and sustained operating leverage from higher-margin industrial jobs.
The research house believed Southern Score’s contract pipeline would remain active, underpinned by strong end-market demand and its ability to secure complex, fast-track technical builds within the data-centre ecosystem.
