Southern Cable’s 2Q profit more than doubles to RM31.6mil

KUALA LUMPUR: Southern Cable Group Bhd’s outlook for the financial year ending Dec 31, 2025 (FY25) remains positive, supported by a healthy order book, resilient product portfolio and firm market demand.

The cable and wire manufacturer is also looking to broaden its product range and boost production capacity.

“As at June 30, Southern Cable’s orders in hand stood at RM1.17bil, providing earnings visibility until 2026,” it said in a filing with Bursa Malaysia.

It said the orders include supplying underground cables and conductors to power utility companies, providing rectifier and battery systems to a telecommunication company, as well as purchase orders from EPCC (engineering procurement construction commissioning) contractors, resellers, and others.

In the second quarter ended June 30 (2Q25), Southern Cable’s net profit more than doubled, rising 119.3% to RM31.6mil from RM14.4mil a year earlier, supported by stronger domestic and overseas demand.

Earnings per share climbed to 3.37 sen from 1.79 sen.

Revenue rose 33% to RM419.3mil from RM315.3mil, fuelled by higher cable and wire sales.

In the first half (1H25), Southern Cable’s net profit more than doubled to RM59mil, while revenue rose 29.1% to RM810.1mil.

The group declared a first interim dividend of 1.2 sen per share for FY25, amounting to RM11.8mil or 20% of 1H25 net profit, payable on Oct 15 with entitlement on Sept 30.

Managing director Tung Eng Hai said the group’s strong 1H25 performance was fuelled by robust demand for cables and wires in both domestic and export markets.

“In Malaysia, we are capitalising on rising demand for high‑voltage power cables, driven by developments in renewable energy, railways, and data centres. At the same time, ongoing geopolitical shifts have accelerated demand for our products in the US market.

“With overseas revenue quadrupling in the latest quarter, we are on track to surpass our RM100mil overseas revenue target this year.

“To meet this rising demand and sustain our growth momentum, we are investing in a new manufacturing facility that will position us to capture even greater opportunities ahead,” he said.

Southern Cable’s expansion next to its Kuala Ketil facilities in Kedah is on track for completion in 2026.

The RM40mil project spans 7.9 acres and will house a high-capacity aluminium furnace to triple aluminium rod output to over 60,000 MT annually, along with a new production line for medium- to extra-high voltage (33kV–275kV) power cables. The expansion is expected to strengthen the group’s position in the high-voltage cable sector.