Southern Cable Kicks Off 2025 with Stellar Performance: A Deep Dive into Their Latest Quarterly Report
Greetings, fellow investors and market watchers! Southern Cable Group Berhad, a key player in Malaysia’s cable and wire manufacturing sector, has just released its first-quarter results for the financial year 2025 (1Q25), and the numbers are certainly turning heads. Far from a typical quarter, Southern Cable has reported a significant surge in profitability, driven by robust domestic demand and an ambitious international expansion. This report offers more than just figures; it paints a picture of a company strategically positioning itself for sustained growth amidst a dynamic market landscape.
Join me as we break down the key highlights from their latest report, exploring what’s driving this impressive performance and what the future might hold for this essential infrastructure enabler.
Core Data Highlights: A Quarter of Remarkable Growth
Southern Cable’s 1Q25 performance showcases strong momentum across key financial metrics. Let’s look at the numbers that stood out:
Financial Performance: Soaring Profits and Revenue
1Q25 Performance
Net Profit: RM27.4 million
Revenue: RM390.8 million
Compared to 1Q24
Net Profit: RM14.1 million
Revenue: RM312.0 million
The Group’s net profit saw an astounding 94.7% increase to RM27.4 million in 1Q25, up from RM14.1 million in the corresponding quarter last year. This remarkable jump was complemented by a 25.2% climb in revenue, reaching RM390.8 million from RM312.0 million previously. This strong growth is largely attributed to heightened demand for power cables and wires, fueled by Malaysia’s accelerated infrastructure, manufacturing, renewable energy, and data centre developments.
Capacity Expansion: Meeting Surging Demand
To capitalize on the robust market demand, Southern Cable significantly boosted its annual production capacity by 19% to 49,980 km compared to the same quarter last year. Looking ahead, the company anticipates further enhancing its annual production capacity to 51,980 km by the end of 2025, signaling confidence in sustained market growth and its ability to meet escalating demand.
Robust Order Book: Clear Earnings Visibility
Southern Cable’s future trajectory is further secured by a substantial RM1.32 billion of orders in hand as at March 31, 2025. This impressive order book provides clear earnings visibility extending until 2026. These orders encompass a diverse range of projects, including supplying underground cables and conductors to power utility companies, providing rectifier and battery systems to telecommunication companies, and fulfilling purchase orders from EPCC (Engineering Procurement Construction Commissioning) contractors and resellers.
International Growth: A Strategic Leap
1Q25 International Revenue
RM31.1 million
Compared to 1Q24
RM4.2 million
Beyond its domestic strengths, Southern Cable is making significant strides in its global reach. Overseas revenue surged by an impressive 636.3% to RM31.1 million in 1Q25, primarily driven by higher exports to the United States. The U.S. construction sector presents a compelling and expanding opportunity, with total construction spending increasing 2.9% to $485.7 billion in 1Q25 from $472.2 billion in the same period last year. Capitalizing on this positive export outlook, Southern Cable has set an ambitious target of RM100 million in revenue from overseas markets for FY2025.
Strategic Outlook and Growth Drivers
Southern Cable’s strong performance isn’t just about current demand; it’s about strategic positioning for future growth. The managing director, Mr. Tung Eng Hai, highlighted that the record overseas growth, particularly in the U.S., validates their international market capture strategy. The demand for their UL-certified aluminum wires within the active U.S. construction sector is seen as a significant inflection point.
The company is actively expanding its specialized product offerings and supply chain capabilities to establish a stronger foothold and achieve its ambitious export target. This global expansion is key to diversifying their revenue base and cementing their position as a global supplier. Domestically, the sustained demand for cables and wires from Malaysia’s rapid industrialization, infrastructure development, renewable energy projects, and data center growth is expected to keep the company operating at high utilization. As production volume scales, Southern Cable anticipates realizing better economies of scale, leading to sustainable earnings growth.
Summary and Outlook
Southern Cable’s 1Q25 report paints a very positive picture, showcasing robust financial performance driven by strong domestic demand and significant international expansion. The company’s proactive investments in capacity expansion and strategic global market penetration appear to be paying off, securing a strong order book and promising future growth.
Key factors that are likely to drive Southern Cable’s continued success include:
- Sustained Domestic Demand: Ongoing infrastructure development, renewable energy projects, and data center expansion in Malaysia provide a solid foundation for growth.
- Successful International Diversification: The impressive growth in overseas revenue, particularly from the U.S. market, reduces reliance on a single market and opens new avenues for expansion.
- Enhanced Production Capacity: Strategic investments in increasing manufacturing capacity enable the company to meet escalating demand and capitalize on market opportunities.
- Strong Order Book: A substantial order book provides clear earnings visibility and stability for the coming years.
- Economies of Scale: As production volumes increase, the company is well-positioned to achieve better cost efficiencies and enhance profitability.
While the report highlights significant positive momentum, it’s always prudent for investors to continue monitoring the company’s execution of its expansion plans and the broader market dynamics that could influence its performance.
Overall, Southern Cable’s 1Q25 performance indicates a company with clear strategic direction and strong operational capabilities. Do you think Southern Cable can maintain this impressive growth momentum in the coming quarters, especially with their ambitious international targets? Share your thoughts in the comments below!
Disclaimer: This blog post is for informational purposes only and does not constitute financial advice or . Readers are encouraged to conduct their own due diligence before making any investment decisions.
