Data centre sector growth to propel Southern Score

By the Editorial Team · Wednesday, September 23, 2026

Southern Score Builders Bhd’s subsidiary SJEE Engineering secured a RM40 million electrical subcontract for a data centre project in Nilai, marking its sixth such contract win in 2026 and boosting the company’s outstanding order book to RM1.9 billion. This growing backlog, coupled with a diversified tender pipeline, offers strong earnings visibility through FY29 and supports positive analyst forecasts for continued profit growth.

Southern Score Builders Bhd (SSBB) is poised for continued growth, supported by its expanding presence in Malaysia’s data centre (DC) sector. The company’s 51%-owned subsidiary, SJEE Engineering Sdn Bhd, recently secured a RM40 million electrical sub-contract for a data centre project in Nilai, Negri Sembilan. This latest award marks SJEE’s sixth DC-related contract win in 2026 and contributes to a cumulative total of RM528 million in DC contracts for the year.

For the financial year 2027 (FY27), ending June 30, SSBB’s year-to-date contract wins have reached RM471.5 million, coming close to full-year replenishment projections set by several brokerage firms just three months into the fiscal year. The additional RM40 million contract boosts SSBB’s outstanding order book to RM1.9 billion, with SJEE’s contracts representing roughly one-third of this figure. This backlog provides a degree of earnings visibility through FY29.

Industry analysts estimate that the new contract could yield around RM3 million in net profit over its duration, based on an assumed 15% net profit margin. Given the size of the DC development, SJEE may also have opportunities to secure future packages at the same site as subsequent phases progress.

SSBB’s tender pipeline currently stands at approximately RM1.1 billion, encompassing DC projects (52%), high-rise residential and hospital developments (44%), and specialised engineering consultancy services (4%). The company’s diversified order book supports stable revenue streams beyond the faster-turnaround DC contracts, which typically involve construction cycles shorter than two years, allowing for quicker recognition of revenue and profits.

The construction division of SSBB, although marked by less frequent contract replenishment, focuses on higher-value projects such as hospitals and high-rise buildings. SSBB maintains ongoing relationships with key property clients including Platinum Victory Holdings Sdn Bhd and Radium Development Bhd, which underpin its tender pipeline.

Market analysts remain optimistic about SSBB’s prospects, maintaining “buy” ratings with target prices ranging from 70 to 78 sen per share. Apex Securities Research values the stock using a 17.6-times price-to-earnings (P/E) multiple on FY27 earnings per share (EPS) of 4.4 sen, highlighting the company’s rapid order replenishment and low execution risk. Phillip Capital Research applies an 18-times P/E multiple on FY27 EPS of 4.1 sen, anticipating a 49% growth in earnings as SJEE accelerates its data centre project execution. TA Research, using a 15-times P/E multiple on FY27 EPS, underscores SSBB’s net cash position, robust profit margins, and strategic positioning in Malaysia’s growing data centre sector as key factors supporting the stock’s outlook.

Overall, SSBB’s strengthening foothold in the data centre industry, complemented by ongoing construction projects and a substantial tender book, provide a solid foundation for sustained revenue and profit growth through the end of the decade.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.