PETALING JAYA: Analysts are positive on Southern Score Builders Bhd
’s (SSB) outlook following its latest RM146.5mil data centre or DC sub-contract win, citing the group’s strengthening position in the mechanical and engineering (M&E) segment.
Apex Securities Research highlighted that the win represents the second-largest contract secured so far in SSB’s M&E division. Based on an estimated 18% net profit margin, it predicted that the contract will contribute around RM13.5mil in profit after tax (PAT) over its duration, constituting 13.5% of its financial year 2027 (FY27) PAT forecast.
It added that the award further establishes SJEE’s place as an M&E contractor, improving its earnings visibility outside of its traditional building construction business. Apex Research has maintained its “buy” rating on the stock, with an unchanged target price of 78 sen.
TA Research similarly said SSB’s strong tender book offers encouraging near-term order book replenishment visibility and supports a more sustainable earnings growth trajectory.
It noted that the total unbilled construction order book, now at RM1.6bil following the recent job win, translates into 7.4 times the company’s FY25 revenue. Assuming a 12% net margin, it estimated the new project to generate RM17.6mil in net profit for the group over the contract period.
