Southern Score Builders Pare Early Gains Despite RM40 Mln Job Win

KUALA LUMPUR, Sept 22 (Bernama) -- Southern Score Builders Bhd (SSBB) opened higher before paring its gains in early trading, despite its announcement yesterday that its unit, SJEE Engineering Sdn Bhd, had secured an RM40 million data centre subcontract project in Nilai, Negeri Sembilan.

At 10.08 am, SSBB’s share price eased half a sen to 62.5 sen with 529,300 shares traded.

The subcontract entails the supply, delivery, installation, testing and commissioning, as well as maintenance and warranty of electrical works for the project.

In a note, Apex Securities Bhd said it viewed the construction company’s two main business segments as complementary rather than overlapping.

It said the group’s mechanical and electrical (M&E) division was replenishing its order book steadily through a string of data centre wins, ranging from single-digit millions to more than RM150 million per contract, while its construction division replenished more periodically.

“Together, we believe this dual-cycle replenishment profile broadens and smooths the group’s earnings visibility relative to a business reliant on a single order book stream.

“The tender pipeline for data centre opportunities remains active, and structural demand for data centres in Malaysia continues unabated, supporting our constructive view on order book replenishment prospects into financial year 2027 and beyond,” it said.

As such, the stockbroking firm maintained its ‘buy’ recommendation on SSBB with an unchanged target price of RM0.78.

-- BERNAMA