Southern Cable Group Berhad: A Record-Breaking Quarter
In a remarkable display of financial prowess, Southern Cable Group Berhad (SCGBHD) has once again proven its mettle in the competitive cable and wire manufacturing industry. The company’s second-quarter net profit for the financial year 2025 has more than doubled, reaching a record high of RM31.64 million. This impressive figure marks the highest profit since the company’s listing in October 2020, underscoring a period of robust growth and strategic success.
Unprecedented Profit Surge
The surge in net profit, from RM14.43 million in the same quarter of the previous year, is attributed to a significant increase in sales volume and an improved product mix. Southern Cable’s revenue for the quarter rose by 33.97% to RM419.3 million, driven by heightened demand both domestically and internationally. This demand is fueled by the company’s strategic positioning in key sectors such as power utilities, telecommunications, and construction, where its products are in high demand.
Strategic Investments and Market Expansion
Southern Cable’s management, led by Managing Director Chen Yong Hai, has been proactive in capitalizing on the growing demand for high-voltage power cables, particularly in the renewable energy, railway, and data center sectors. The company’s strategic investments in expanding its production capacity and broadening its product range are poised to meet the increasing demand and secure its market position. With an order book of RM1.17 billion as of June 30, 2025, Southern Cable’s earnings visibility extends into 2026, showcasing the company’s strong market presence and future growth potential.
Generous Dividend Declaration
In a move that underscores its financial health and commitment to shareholder value, Southern Cable has declared an interim dividend of 1.20 sen per share, payable on October 15, 2025. This decision reflects the company’s confidence in its financial stability and its desire to reward its shareholders for their continued support.
Market Performance and Outlook
Despite a slight dip in share price on the day of the announcement, Southern Cable’s stock has seen a remarkable 54.47% increase since the beginning of 2024, making it one of the hottest stocks on the Malaysian market. With a market capitalization of 1,868,691,648 MYR and a price-to-earnings ratio of 19.1981, the company’s financial metrics reflect its strong market position and investor confidence.
Conclusion
Southern Cable Group Berhad’s record-breaking second-quarter performance is a testament to its strategic foresight, operational excellence, and market adaptability. As the company continues to expand its product range and production capacity, it is well-positioned to capitalize on the growing demand for cable and wire products. With a robust order book and a clear vision for the future, Southern Cable is set to maintain its growth trajectory and deliver value to its shareholders.