KUALA LUMPUR: Southern Cable Group Bhd
is upbeat on its prospects, backed by robust demand from data centre and renewable energy initiatives under the National Energy Transition Roadmap (NETR), national grid upgrades and rising infrastructure activity.
The cable and wire manufacturer said ongoing investments across the power infrastructure value chain, coupled with its expanding production capacity and RM1.36bil order book, are expected to support its growth momentum.
Managing director Tung Eng Hai said sustained industrial and data centre developments were driving stronger electricity consumption, while the energy transition was reshaping the country's power landscape.
“These tailwinds are set to drive sustained investment across the power infrastructure value chain, creating a supportive backdrop for us,” he said in a statement.
“Importantly, we have been building our capabilities ahead of this demand. With greater capacity and enhanced product offerings, we are poised for the next phase of expansion, while reinforcing our ability to support the nation’s long-term development,” he said in a statement.
Southern Cable’s orders in hand stood at RM1.36bil as at June 30, 2026, to be recognised through 2028.
The orders comprise the supply of cables and conductors to power utilities as well as engineering, procurement, construction and commissioning contractors undertaking infrastructure, data centre and renewable energy projects.
To meet anticipated demand, the group is expanding its cable and wire production capacity from 54,980 kilometres (km) per annum currently to 60,000km by end-2026 and 65,000km by end-2027.
Southern Cable is also strengthening its upstream capabilities, with a new copper furnace targeted for commissioning by end-2026. The furnace will lift annual copper rod capacity to 24,000 tonnes from 18,000 tonnes currently.
Its new plastic compound facility, which is undergoing testing, is targeted for commissioning in the third quarter of 2026, raising annual capacity to 12,000 tonnes from 7,800 tonnes.
Meanwhile, the commissioning of an aluminium furnace in April has lifted the group’s annual aluminium rod capacity to more than 60,000 tonnes.
Southern Cable said its recently secured certification for its 132kV Milliken Conductor cable also strengthens its growth prospects by broadening its addressable market and enabling greater participation in high-capacity power connection projects.
The group is also looking to deepen its presence in the United States after overseas revenue jumped 44.3% to RM112.8mil in the first half of 2026 (1H26), from RM78.2mil a year earlier, mainly on stronger US deliveries.
For the second quarter ended June 30, 2026 (2Q26), Southern Cable’s net profit jumped 28.2% to RM40.6mil from RM31.6mil a year earlier, while revenue climbed 25.8% to RM527.6mil from RM419.3mil.
For 1H26, net profit rose 24.9% to RM73.7mil from RM59mil, while revenue grew 18.5% to RM960.3mil from RM810.1mil.
The group declared a first interim dividend of 1.20 sen per share for FY26, amounting to RM15.3mil, or about 20% of its 1H26 net profit. The dividend is payable on Oct 12, 2026.
