SOUTHERN SCORE BUILDERS BERHAD: A Strong Q3 FY2025 Performance Amidst Strategic Expansion
Greetings, fellow investors! Today, we’re diving deep into the latest financial performance of SOUTHERN SCORE BUILDERS BERHAD (SSBB), a prominent player in Malaysia’s construction sector. Their recently released interim financial statements for the third quarter ended 31 March 2025 paint a picture of significant growth, driven by strategic acquisitions and robust operational efficiency.
This report highlights not only impressive revenue and profit increases but also the company’s proactive steps to diversify its service offerings and strengthen its market position. From a substantial jump in quarterly profit to the announcement of a dividend, there’s plenty to unpack. Let’s explore the key figures and strategic moves that are shaping SSBB’s journey.
Core Data Highlights: A Quarter of Remarkable Growth
SOUTHERN SCORE BUILDERS BERHAD has delivered a compelling performance for Q3 FY2025, showcasing strong growth across its key financial metrics. The figures speak volumes about the company’s operational strength and the positive impact of its recent strategic initiatives.
Quarterly Performance (Q3 FY2025 vs. Q3 FY2024)
Q3 FY2025
Revenue: RM59.84 million
Profit Before Tax: RM15.53 million
Profit After Tax: RM11.61 million
Earnings Per Share: 0.44 sen
Q3 FY2024
Revenue: RM39.35 million
Profit Before Tax: RM9.70 million
Profit After Tax: RM7.19 million
Earnings Per Share: 0.32 sen
Revenue surged by 52.06% to RM59.84 million, while Profit Before Tax saw an even more impressive increase of 60.13% to RM15.53 million. This substantial growth was primarily fueled by the acquisition of SJEE, which contributed significantly to mechanical and electrical services revenue.
Year-to-Date Performance (9 Months FY2025 vs. 9 Months FY2024)
9 Months FY2025
Revenue: RM140.04 million
Profit Before Tax: RM40.10 million
Profit After Tax: RM30.17 million
Earnings Per Share: 1.26 sen
9 Months FY2024
Revenue: RM107.13 million
Profit Before Tax: RM24.40 million
Profit After Tax: RM18.56 million
Earnings Per Share: 0.82 sen
For the nine-month period, revenue increased by 30.71% to RM140.04 million, and Profit Before Tax soared by 64.35% to RM40.10 million. This sustained growth highlights the company’s ability to scale its operations and enhance profitability over time.
Segmental Contributions
The revenue breakdown reveals the changing dynamics within SSBB’s business units:
| Service Segment | Q3 FY2025 (RM’000) | Q3 FY2024 (RM’000) | Change (%) |
|---|---|---|---|
| Turnkey Construction Services | 33,369 | 37,919 | -12.00% |
| Main Construction Services | 3,095 | 1,433 | +115.98% |
| Mechanical and Electrical Services | 22,720 | – | N/A (New) |
| Supply of Consumable | 655 | – | N/A (New) |
| Total Revenue | 59,839 | 39,352 | +52.06% |
The significant increase in revenue is largely attributed to the newly acquired SJEE, which contributed RM22.72 million from mechanical and electrical services and RM0.66 million from consumable supply. Main construction services also saw a substantial increase due to the kick-start of an upgrading work to a detention pond project. However, turnkey construction services experienced a slight decrease, primarily due to the completion of the Vista Harmoni Sentul Residences project.
Comparison with Immediate Preceding Quarter (Q3 FY2025 vs. Q2 FY2025)
Q3 FY2025
Revenue: RM59.84 million
Profit Before Tax: RM15.53 million
Q2 FY2025
Revenue: RM40.70 million
Profit Before Tax: RM14.48 million
Revenue increased by 47.01% compared to the immediate preceding quarter, again mainly due to SJEE’s contributions. However, Profit Before Tax only rose by 7.19%. This disparity is noted to be due to the lower profit margin contributed by the mechanical and electrical division compared to the construction management division.
Strategic Vision: Risks and Prospects
SOUTHERN SCORE BUILDERS BERHAD is not just resting on its laurels; the company is actively charting a course for future growth and resilience. The latest Quarterly Construction Statistics for Malaysia’s First Quarter of 2025, which reported a moderate increase of 16.60% in the value of work done in the construction sector, provides a positive backdrop for SSBB’s ambitious plans.
The Group is strategically strengthening its position within the construction value chain. A key move was the successful acquisition of SJEE Engineering Sdn Bhd, a specialist in mechanical and electrical (M&E) services, particularly within the high-tech, data center, and healthcare sectors. This acquisition not only diversifies SSBB’s service offerings but also opens doors to new, high-growth segments. Furthermore, the establishment of Southern Score Digital Sdn Bhd, a new digital arm, signifies the company’s commitment to embracing digital engineering advisory, construction advisory, and building information modeling services. These initiatives are expected to enhance SSBB’s existing order book and secure more contracts, paving the way for sustainable success.
It’s also noteworthy that the Southern Score Sdn Bhd group has successfully achieved its targeted profit guarantee of RM80 million cumulatively before the end of the Revised Profit Guarantee Period (FYE 2022 to FPE 2025), demonstrating strong underlying business performance and management’s capability to meet financial targets.
On the corporate front, SSBB is exploring a proposed transfer of its entire issued share capital from the ACE Market to the Main Market of Bursa Securities. This move, if successful, could enhance the company’s visibility, liquidity, and access to a broader investor base.
While the outlook is positive, the report also highlights a key point for consideration: the mechanical and electrical division, while contributing significantly to revenue, currently operates at a lower profit margin compared to the traditional construction management division. Managing this margin difference will be crucial as the M&E segment grows its contribution to overall revenue. Additionally, the completion of major projects, such as Vista Harmoni Sentul Residences, necessitates a continuous pipeline of new projects to maintain revenue momentum in traditional segments.
Summary and Outlook
SOUTHERN SCORE BUILDERS BERHAD has demonstrated a robust financial performance in Q3 FY2025 and for the nine-month period, driven by strategic acquisitions and effective cost management. The significant increase in revenue and profit before tax underscores the company’s operational strength and its successful integration of new business segments.
The strategic expansion into mechanical and electrical services through SJEE and the establishment of a digital engineering arm are clear indicators of SSBB’s forward-looking approach to capture new opportunities in the evolving construction landscape. The successful fulfillment of the profit guarantee further reinforces confidence in the company’s financial discipline and growth potential.
However, as with any growth trajectory, challenges exist. The lower profit margins in the new M&E division will require careful management to ensure overall profitability remains strong. The company’s ability to consistently secure new contracts and effectively integrate its diversified services will be key to sustaining its growth momentum. The proposed transfer to the Main Market also represents a significant milestone that could unlock further value for shareholders.
Key points from the report that warrant continued attention include:
- The integration and profitability of the newly acquired Mechanical and Electrical (M&E) services, given their currently lower profit margins compared to construction management.
- The company’s ability to secure new projects and replenish its order book, especially as major turnkey projects reach completion.
- The successful execution of the proposed transfer from the ACE Market to the Main Market of Bursa Securities and its potential impact on market perception and investor interest.
In my professional view, SOUTHERN SCORE BUILDERS BERHAD is at an exciting juncture, leveraging its core construction expertise while strategically diversifying into high-growth areas. The management’s focus on expanding capabilities and achieving financial targets bodes well for its long-term trajectory.
What are your thoughts on SOUTHERN SCORE BUILDERS BERHAD’s latest performance and strategic direction? Do you believe their expansion into M&E and digital services will be a game-changer for their future growth? Share your insights in the comments below!
