PETALING JAYA: Southern Score Builders Bhd
’s robust outstanding order book of RM1.4bil, supported by a healthy three‑times book‑to‑bill ratio, provides clear earnings visibility through to the financial year 2028 (FY28), says Apex Securities.
To sustain this momentum, the research house said the group is targeting annual replenishment of about RM500mil, driven by the high‑growth data centre (DC) and residential sectors.
“This growth is supported by an asset‑light model that enhances flexibility and capital efficiency, enabling the group to achieve higher returns on equity while scaling efficiently with new contract wins,” it added.
Apex Research, which initiated coverage on Southern Score, also projects a net profit compound annual growth rate of 42% between FY25 and FY28, underpinned by the group’s outstanding order book and its assumed annual replenishment of RM500mil from FY26 to FY28.
Southern Score is principally involved in turnkey and main construction services for high‑rise residential buildings and civil infrastructure projects, complemented by its mechanical and engineering (M&E) and digital engineering solutions.
Meanwhile, Apex Research said the group is positioning itself to be a key beneficiary of Malaysia’s DC boom through its M&E arm, SJEE Engineering, which focuses on higher‑margin, shorter‑cycle projects with turnaround periods of 12 to 18 months and net margins of about 15%.
By targeting Tier-3 and Tier-4 data centres that require advanced technical capabilities, SJEE is well-placed to capitalise on rising hyperscaler investments.
With an estimated build cost of RM25mil per megawatt (MW) and M&E works accounting for around RM4mil per MW, a typical 50MW DC represents an addressable M&E opportunity of approximately RM200mil.
Apex Research has recommended a “buy” call on Southern Score with a target price of 81 sen per share.
“We believe this is justified by the group’s healthy net‑cash balance sheet, asset‑light business model and exposure to the high‑growth DC segment,” it noted.
