PETALING JAYA: Southern Score Builders Bhd
’s growth prospects will be underpinned by the company’s growing data centre or DC order book, as well as robust order book visibility from existing anchor clients.
Its construction arm’s latest RM180mil contract secured for a private hospital development in Melaka, represents the company’s largest single contract win across any segment in 2026.
Assuming an estimated 15% net profit margin, Apex Securities Research expects the new contract will contribute about RM27mil in profit after tax (PAT) over its duration, or 27.1% of financial year ending June 30, 2027 (FY27) PAT forecasts.
The award confirms that Radium Development Bhd continues to provide Southern Score with recurring project flow, offering a steadier, more predictable complement to the lumpier, tender-driven mechanical and electrical or M&E order book, the brokerage said in a recent report.
It also extends the company’s construction segment into the healthcare infrastructure vertical, alongside existing residential and civil infrastructure work.
Given the comprehensive scope spanning structural works through to specialised fit-out items such as kitchen equipment and facade treatment, Apex Research sees moderate execution complexity.
However, this would be mitigated by the company’s established track record and broader construction management capabilities. The brokerage maintained a “buy” call on the stock with an unchanged target price of 78 sen per share.
Meanwhile, Phillip Capital Research has reiterated a “buy” on Southern Score and kept its target price at 74 sen.
Inclusive of this latest win, the brokerage said year-to-date contract wins stood at RM432mil, comprising 39% of its full-year FY27 replenishment assumption of RM1.1bil.
This contract lifts the outstanding order book to RM1.6bil with its 51%-owned SJEE Engineering Sdn Bhd making up some 21% of the total, providing earnings visibility until FY29, Phillip Capital Research said.
