PETALING JAYA: Construction outfit Southern Score Builders Bhd
’s (SSB) latest RM105mil data centre (DC) contract secured through 51%-owned subsidiary, SJEE Engineering Sdn Bhd, together with a pipeline of projects from related parties, will support earnings visibility.
Analysts remained positive on the stock, with Apex Securities Research and Phillip Capital Research maintaining their “buy” calls.
Apex Research has reiterated its target price (TP) of 78 sen for the stock, with Phillip Capital maintaining the TP at 74 sen.
“We continue to like SSB for its growing DC order book, coupled with robust order book visibility from existing anchor clients, including Platinum Victory and Radium Development Bhd,” Phillip Capital said.
It noted that SSB has positive replenishment prospects supported by an RM1.1bil tender book comprising DC (26%), residential (37%), and government-related buildings (37%).
It expects SSB to replenish the order book by up to RM1.1bil for the financial year ending June 30, 2027 (FY27).
The latest project brings it to 23% of the total replenishment assumption.
“Within the DC tender book, we understand there are two major tenders, with a combined contract value of RM250mil, accounting for the bulk of the RM280mil DC tender book, and successful conversion of either would meaningfully advance our FY27 replenishment assumption,” it added.
