PETALING JAYA: Southern Score Builders Bhd
’s core net earnings are projected to surge 47.6% to a record RM92.8mil in the financial year ending June 30, 2027 (FY27), driven by accelerated execution of its RM1.64bil construction and mechanical and electrical (M&E) order book.
TA Research expects the stronger project execution to lift revenue by 73% to RM849.7mil in FY27, following a 52.3% increase in core net earnings to RM62.9mil in FY26.
The group currently has an unbilled construction order book of RM1.05bil and outstanding M&E contracts worth RM590.3mil.
The research house expects revenue recognition to accelerate as projects representing about 50% of the M&E order book enter a more intensive phase of execution.
For FY27, Southern Score is targeting RM1bil to RM1.1bil in new contracts, comprising RM400mil to RM450mil in construction jobs and RM600mil in M&E works through SJEE Engineering Sdn Bhd.
The group has secured RM471.5mil in new contracts so far in FY27, comprising RM291.5mil in M&E jobs and RM180mil in construction jobs.
This represents 42.9% of TA Research’s full-year assumption of RM1.1bil in new contract wins.
“We expect the group to remain well on track to replenish the remaining order book, supported by over RM1.15bil worth of tender book across both segments,” the research house said in a note.
TA Research maintained its “buy” recommendation and earnings forecasts, but raised its target price to 82 sen from 70 sen.
The revision reflects valuation adjustments and a roll-forward of its valuation base year to 2028, while retaining a price-earnings multiple of 15 times 2027 earnings.
Potential near-term contract wins include a government-related construction contract from Jabatan Kerja Raya, semiconductor-related projects and several data centre M&E packages.
