Key Financials

Sources: Company, Bloomberg, Phillip Research forecasts. Note: *FY23 reflects only 6 months results.

Company at a glance

A new life. Southern Score began a new chapter in 2022 after the reverse takeover of G Neptune Berhad, transforming into a full-fledged construction management company. The RTO involved the injection of Southern Score Sdn Bhd and a subsequent rebranding exercise, accompanied by a RM16.5m private placement at RM0.20/share to support working capital and expansion.

Asset light and focus on high-rise residential projects. Southern Score focuses primarily on high-rise residential developments, with supporting capabilities in civil infrastructure works. With close to 15 years of execution track record, the group operates on an asset-light business model, concentrating on project management roles while outsourcing core construction activities to a network of reliable subcontractors. This model allows them to scale efficiently while maintaining a lean balance sheet and agile cost structure.

Turnkey contracts support higher margins. Southern Score typically undertakes projects either as a turnkey or main contractor. Under the turnkey model, the group assumes a more integrated role, from design and planning to feasibility studies and securing development approvals. This supports higher project margins, with turnkey jobs typically delivering gross profit margins of 25-35%, compared to 15-25% for conventional main contractor roles. The rising proportion of turnkey projects has driven margin expansion in FY24-25.

Table 1: Southern Score’s services offering

As a G7 license holder, Southern Score is a full-fledged project management services provider, offering both Turnkey and Main Contracting services.

Source: Company

Investment summary

Healthy jobs flows pipeline

Strong anchor client with room to grow. Southern Score’s close affiliation with Platinum Victory (PV) and Radium, anchored by a common shareholder through the Gan family, has supported a steady pipeline of recurring projects and strengthened long-term order book visibility. Since FY19, the group has secured over RM2bn worth of projects from PV, representing c.50% of PV’s total awards. With PV holding over 200 acres of land across prime Klang Valley locations, its RM20bn GDV pipeline supports a consistent RM1.5-2.0bn annual launch cadence over the next decade. This translates to roughly RM1bn in annual construction opportunities, or RM5bn cumulatively over the next 5 years based on Southern Score’s existing wallet share. Backed by a stronger balance sheet and expanding execution capabilities, the group is increasingly well-positioned to secure a larger share of future, more complex packages.

Radium to provide another boost to contract replenishment. Southern Score recently secured a RM78m contract for detention pond upgrading works from Radium, marking its maiden job win from this related-party developer. While modest in value, this maiden contract is strategically significant as it signals the start of a potentially recurring project flow from Radium, mirroring Southern’s Score success with PV. Radium has seen ramping up its land banking efforts in Klang Valley, replenishing RM3bn in GDV YTD and raising its total unbilled GDV to RM4.4bn. We estimate these developments could translate into RM2bn worth of construction opportunities over the near-term, offering meaningful upside as Southern Score expands its footprint across the extended group.

Table 7: Radium Development’s project pipeline

Source: Company

On the cusp of DC upcycle

Expanding footprint into the DC sector. The acquisition of a 51% stake in SJEE represents a timely and significant step forward for Southern Score to penetrate the fast-expanding data centre segment. With global hyperscalers ramping up their footprint in Malaysia, specialised electrical infrastructure has emerged as a critical and high-value segment within the DC build ecosystem. SJEE’s proven track record in delivering power distribution systems for DCs, industrial facilities, and commercial projects complements Southern Score’s integrated delivery capabilities. With a RM15m cumulative profit guarantee across FY25-27E, the acquisition implies a compelling 9x PE valuation and is expected to be immediately earnings-accretive.

Sizable opportunities from Malaysia’s 4GW DC pipeline. Malaysia is fast emerging as a regional powerhouse in the DC space, attracting over RM80bn in investments since 2021 from top-tier global DC operators. This influx has been driven by strong government support, abundant land availability, and scalable power infrastructure. With over 4GW of committed pipeline capacity, we estimate potential construction value of RM60-65bn. Dgtl Infra estimates that 40-45% of total construction value is typically allocated to the electrical system, a segment where SJEE has strong domain expertise, positioning it well to capitalize on this wave of DC expansion.

Table 11: Malaysia’s growing pipeline of planned DC projects

Source: Various, Phillip Research forecasts

Financial highlights and earnings outlook

Strong potential for SJEE to exceed the profit guarantee. Over the past 4 years, SJEE posted revenue and net profit of RM44-78m and RM2-5m respectively, with PAT margins doubling to 10% in 2023 attributed to an increased focus on quicker-turnaround and higher-margins DC projects. Revenue dipped by 17% YoY in 2024, primarily due to the timing of project recognition. Nevertheless, we expect earnings to rebound, supported by its robust order and tender book of RM100m/RM450m, providing strong earnings visibility through FY26E. Based on Southern Score’s 51% equity stake, we project SJEE’s earnings of RM12m across FY26-27E assuming an annual order book replenishment of RM250-300m.

Robust order book anchored by key clients and expanding DC pipeline. Southern Score’s order book stands at RM1.3bn as of Jun25, translating to an impressive 7.6x FY24 revenue cover. Platinum Victory makes up a significant portion (60%) of the current order book. The group is actively pursuing RM1.2bn worth of tenders, with DC making up 39% of the pipeline, primarily involving 3-4 reputable hyperscalers, anticipated to be awarded in 2HCY25. The balance is split between residential (30%) and government-related building projects (30%).

Table 21: Forecast 3-year profit CAGR of 46% over FY24-27E

A combination bar and line chart forecasts Core PAT and EBITDA from FY23 to FY27E. Core PAT (darker bars) is projected to grow significantly from RM30.2m in FY24 to RM94.8m in FY27E. The PAT margin (line) is expected to moderate slightly from a high in FY23 but remain strong, around 12.5% in FY27E. EBITDA (lighter bars) also shows a strong growth trajectory, reaching RM140.5m in FY27E.

Source: Company, Phillip Research forecasts. *FY23 reflects only 6 months results due to change in FYE.

Valuation and recommendation

Initiate coverage with a BUY rating and TP of RM0.75. We initiate coverage on Southern Score with a BUY call and a 12-month TP of RM0.75, based on a target 18x FY27E EPS. Our target PER at +1SD above the construction sector’s 10-year average is justified, given 1) robust order book visibility, 2) superior profit margins, 3) strong 3-year profit CAGR of 46%, and 4) strategic expansion into the fast-growing DC sector.

We see promising growth opportunities for Southern Score, supported by PV and Radium’s substantial landbank. Its early-mover advantage into the DC segment further enhances its long-term growth prospects. Trading at 15.5x 2026E PER, we view the valuation as undemanding, with increasing traction in the DC space serving as a catalyst for further PER re-rating.

Table 26: Peer comparison

Source: Bloomberg, Phillip Research forecasts Closing price as of 8th August 2025 *Calendarized data

Key downside risks

Low order book replenishment. Earnings are highly reliant on its ability to consistently secure new projects. Any delay or changes in development plans or contract award timelines from its key customers could deter and affect its earnings visibility and growth prospects.

Customer concentration risk. The group’s order book is heavily concentrated, with over 60% tied to recurring contracts from PV. Any slowdown or disruption in PV’s project pipeline would materially impact Southern Score’s revenue and earnings forecasts.

Unforeseen project cost overruns and delays. Southern Score depends on subcontractors to perform certain work scopes. A shortage of reliable suppliers or unforeseen project delays could disrupt progress and potentially result in penalties, adversely affecting profitability.

Company Background

High-rise builder. Southern Score is a seasoned construction management company with over 15 years of experience, specializing in high-rise residential developments. As a registered CIDB G7 contractor, the group has focused on turnkey and main contractor projects since 2015.

Listed status via RTO. Southern Score gained its listing status through an RTO of G Neptune, a company previously classified under GN3 status. The RTO marked a strategic transformation from an IT-related entity into a construction-focused group.

Ownership ties with PV and Radium. Southern Score shares deep ownership and familial ties with PV and Radium—2 established names in the residential space. This strategic alignment supports a consistent pipeline of projects, with PV and Radium collectively contributing 68% of Southern Score’s outstanding order book.

Financials