Southern Score Secures Data Centre Contracts, Boosting Growth Prospects

KUALA LUMPUR, Nov 12 — Southern Score Builders Bhd (SSB8) has secured two subcontract packages worth a combined RM146.8 million for electrical works at data centre projects in Port Dickson, Negeri Sembilan, further strengthening its earnings visibility and lifting its outstanding order book beyond RM2 billion.

The contracts were awarded to SJEE Engineering Sdn Bhd, a 51 per cent-owned subsidiary of Southern Score, and cover the construction, testing and commissioning of Electrical Package 3 works for two hyperscale data centre developments.

Project A carries a contract value of RM67.4 million, with completion scheduled between October 2027 and January 2028, while Project B is valued at RM79.4 million and is expected to be completed between January and April 2028.

Analysts view the latest award positively as it follows another RM146.5 million data centre electrical package secured by the group in August, signalling SJEE’s growing presence in Malaysia’s expanding data centre ecosystem and its ability to secure repeat contracts.

Southern Score

Based on an estimated net profit margin of 18 per cent, the projects are expected to generate approximately RM26.4 million in net profit over FY2027 and FY2028. Southern Score’s attributable share is estimated at RM13.5 million, representing about 12.8 per cent of its revised FY2027 projected earnings.

Following the latest wins, the group’s outstanding order book has expanded to approximately RM2.05 billion, equivalent to 4.2 times projected FY2026 revenue. The order book comprises RM1.23 billion from construction activities, RM777.5 million from mechanical and electrical (M&E) projects, and RM40.5 million from specialised engineering consultancy services.

With year-to-date contract wins of RM618.3 million already exceeding earlier assumptions, earnings forecasts for FY2027 to FY2029 have been upgraded.

Maintaining a BUY call, analysts raised Southern Score’s target price to RM0.81 from RM0.78, citing stronger earnings prospects backed by a healthy data centre project pipeline and sustained order book replenishment.

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