Positive outlook for Southern Score on robust DC order book

By the Editorial Team · Tuesday, September 15, 2026

Southern Score Builders Bhd secured a RM180 million contract to build a private hospital in Melaka, its largest project win this year, expected to contribute around RM27 million in profit after tax. This contract strengthens the company’s ties with Radium Development Bhd, diversifies its construction portfolio into healthcare infrastructure, and supports earnings visibility through FY29.

Southern Score Builders Bhd is expected to experience sustained growth driven by a robust order book in its data centre (DC) segment, alongside consistent project flow from its key clients. The company’s construction division recently secured a RM180 million contract to develop a private hospital in Melaka, marking its largest individual contract win across any sector this year.

Market analysts estimate that with an assumed net profit margin of 15%, this contract could generate approximately RM27 million in profit after tax (PAT) over the project duration. This figure represents around 27% of Southern Score’s projected PAT for the financial year ending June 30, 2027 (FY27).

The award reinforces the ongoing business relationship with Radium Development Bhd, which provides Southern Score with recurring projects. This arrangement offers a more stable and predictable revenue stream, balancing the company’s traditionally fluctuating mechanical and electrical (M&E) tender-based order book. This contract also expands Southern Score’s construction portfolio into the healthcare infrastructure sector, complementing its existing engagements in residential and civil infrastructure projects.

The scope of the new hospital development is comprehensive, covering structural works and specialised fit-outs such as kitchen equipment and facade treatments. While analysts note potential moderate execution complexity, they believe Southern Score’s established track record and extensive construction management expertise should mitigate risks associated with the contract.

Research firms maintain positive outlooks on the company’s shares. One brokerage reaffirmed a “buy” rating with a target share price of 78 sen, while another retained a “buy” recommendation and target price of 74 sen.

Incorporating the recent contract, year-to-date contract wins for Southern Score total RM432 million, accounting for 39% of the full-year FY27 order replenishment target of RM1.1 billion. The company’s outstanding order book stands at RM1.6 billion, with its 51%-owned subsidiary, SJEE Engineering Sdn Bhd, contributing approximately 21% of this volume. Analysts note that this order book provides earnings visibility extending through FY29.

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.