Southern Score Builders Bhd - Second Data Centre Win in a Week Lifts FY27 Momentum Further
Thu, 13-Aug-2026 07:22 am
by Research Team • Apex Research

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SSB8 (0045)

Target Price (RM)

0.78

Recommendation

Buy

  • SSB8 secured a RM105m data centre subcontract at Puncak Alam, Selangor, through its 51%-owned subsidiary, SJEE Engineering Sdn Bhd.

  • Assuming an 18% net profit margin, the contract is expected to contribute c.RM9.6m in PAT (or c.9.6% of FY27F PAT) over FY27F-FY28F. 

  • With this contract win, the Group's outstanding orderbook now stands at c.RM590.7m, providing solid revenue visibility equivalent to a book-to-bill ratio of 1.1x FY27F revenue.

  • Maintain our BUY recommendation on SSB8 with an unchanged TP of RM0.78, based on unchanged 17.6x P/E multiple applied to FY27F EPS of 4.4 sen.

 

Secures RM105m Data Centre Contract. SSB8, through its 51%-owned subsidiary, SJEE Engineering Sdn Bhd (“SJEE”), has accepted a letter of award from a local construction company to undertake a Subcontract Works Electrical Package 3 (MV02 & MV03) for a data centre project located at Puncak Alam, Selangor, at a total subcontract sum of RM105m. The project commenced on 21 July 2026 and is expected to complete by 14 October 2027, a c.15-month execution window falling within FY27 and FY28. This is the Group's second data centre contract announcement within a single week, following the RM146.5m award on 6 August 2026. 

 

Our View. We view this award positively, as it introduces an additional revenue stream over FY27 and FY28 while strengthening the Group’s orderbook. This is the Group's fifth data centre job secured in 2026, taking cumulative wins for the year to RM488.0m, and notably its second data centre win within a single week — a further sign of sustained momentum in SJEE's order intake rather than a one-off event. Assuming an estimated 18% net profit margin and accounting for the Group's 51% effective stake in SJEE, we estimate the contract will contribute c.RM9.6m in PAT over its duration, or c.9.6% of our FY27F PAT. Given SJEE's established delivery record on comparable high-specification digital infrastructure works, we view execution risk as manageable, though management's own comment that its expanded team already has its "hands full" is a reminder that talent pool growth needs to keep pace with the orderbook to avoid delivery bottlenecks. 

 

Outlook. With this Contract and the RM146.5m contract announced on 6 August 2026, the Group’s outstanding orderbook rises to c.RM590.7m, extending earnings visibility well into FY28. The tender pipeline remains healthy, with structural demand for data centres in Malaysia continuing unabated. We remain constructive on the Group's orderbook replenishment prospects, supported by expanding data centre opportunities and recurring project flows from related parties. Malaysia remains one of the fastest-growing data centre markets in Southeast Asia, with sustained capex from hyperscalers and cloud service providers continuing to underpin demand for specialised M&E fit-out works. SJEE's track record of nine contract wins since June 2025 suggests the Group is capturing a growing share of this opportunity set, aided by its BIM capabilities and demonstrated execution on high-specification digital infrastructure. 

 

Earnings Revision. No change to our earnings revision as this award falls within our orderbook replenishment assumption for FY27F of RM500m. Notably, these two data centre wins alone, RM146.5m and RM105.0m totalling RM251.5m, were secured within the first six weeks of FY27F and already account for c.50% of that full-year assumption, reinforcing our confidence that the Group is tracking well ahead of a typical replenishment pace.

 

Valuation & Recommendation. We maintain our BUY recommendation on SSB8 with an unchanged TP of RM0.78, based on unchanged 17.6x P/E multiple applied to a FY27F EPS of 4.4 sen, alongside a three-star ESG rating.

 

Risks. Rising material costs, labour shortages and oversupply of high-rise residential projects in the Klang Valley area.

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