Southern Score's RM180mil hospital job boosts revenue visibility
KUALA LUMPUR: Southern Score Builders Bhd’s newly secured RM180 million contract for a hospital project in Melaka is expected to provide the company with solid revenue visibility, according to Apex Securities Bhd.
KUALA LUMPUR: Southern Score Builders Bhd has landed a significant RM180 million contract for a hospital project in Melaka, according to Apex Securities Bhd. This contract, the firm's largest single win in 2026, offers strong revenue visibility for the company. The award represents a book-to-bill ratio of around 3.8 times Southern Score's unaudited FY26 revenue.
Assuming a 15% net profit margin, the contract could contribute approximately RM27 million in after-tax profit over its lifespan, accounting for about 27.1% of the firm's FY27 revenue. Apex Securities has retained its earnings forecasts, as the contract fits within its FY27 order book replenishment assumption of RM500 million. The company's year-to-date contract wins of RM431.5 million already approach this target, despite being less than three months into the financial year.
If this trend continues, there is a reasonable chance of a further upward revision to their FY27 and FY28 revenue and earnings forecasts. Apex Securities has kept its Buy recommendation on Southern Score with an unchanged target price of 78 sen.
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