Why Could Southern Cable Group Post a Record RM600 Million Quarter?
Southern Cable Group Bhd (KL:SCGBHD) could hit revenue of RM600 million in 3Q26, Hong Leong Investment Bank Research said on Sept 29. That would surpass its record 2Q26 performance.
Circa RM200 million of data centre (DC) and 132kV cable orders won in 2Q26 enter peak delivery in 3Q26. These orders have fully booked its capacity for FY26.
What Is Lifting SCG’s FY27 Forecasts?
Hong Leong raised FY26-FY28 earnings by 8%-11%, citing a stronger-than-anticipated power infrastructure cycle. The bank also drew on Tenaga Nasional Bhd (KL:TENAGA)’s latest earnings call and meetings with mechanical and electrical contractors.
FY27 revenue growth is projected at 17%, mainly from higher capacity. Stronger 132kV take-up and larger DC order contributions are flagged as possible sources of further upgrades.
A higher purchase order mix should cushion plastic cost pressure, allowing stronger sales to flow through to earnings.
What Is Behind Yinson’s 43% Profit Jump to RM263 Million?
Yinson Holdings Bhd (KL:YINSON) posted first-half FY27 core net profit of RM263 million, up 43% y-o-y for the half ended January, RHB Research said on Sept 30.
That figure accounts for 30% of RHB’s FY27 forecast and 40% of consensus. RHB deems the results in line and keeps its earnings forecasts unchanged.
Earnings are typically back-end loaded, supported by recurring charter contributions, annual charter escalations and potential project wins later in the year.
How Much Visibility Does Yinson’s US$18.9 Billion Order Book Give?
RHB says the US$18.9 billion order book provides long-term earnings visibility through 2050. A full-year contribution from Agogo in FY27 should strengthen underlying earnings.
FSO Lac Da Vang remains on track for first oil in 4QFY27, adding earnings toward the end of FY27 and a bigger uplift from FY28. Agogo’s transition to non-recourse financing and stronger operating cash flow are also improving balance sheet risk.
What Are AWC’s Two India Contracts Worth to Shareholders?
AWC Bhd (KL:AWC)‘s indirect wholly-owned subsidiary Stream Industries Sdn Bhd (STREAM) signed two agreements with Gujarat International Finance Tec-City Co Ltd. The deals connect upcoming GIFT City developments in Gandhinagar to an automated waste collection system network.
- Domestic Tariff Area contract: INR19.82 crore (RM8.4 million, inclusive of GST)
- Special Economic Zone contract: INR11.03 crore (RM4.7 million, zero-rated for GST)
- Duration: 36 months from the notice to commence
STREAM intends to novate both agreements to a newly incorporated Indian entity once established. Apex Securities sees early traction on AWC’s India smart-city pivot.
What Is Apex Securities’ RM1.22 Target for AWC Based On?
Apex Securities maintains its ‘buy’ on AWC with an unchanged SOP target price of RM1.22, fully diluted. It values engineering at 15 times, environment at 13 times, and facilities and rail at seven times each, all on FY28F earnings.
Apex credits two independent entry points into the data centre theme, through engineering and facilities. It also cites predictable cash flows from long-term concessions and a net cash balance sheet every year since AWC’s 2003 listing. Tracking broker reports like these is easier with AI Stock Analysis for Malaysians.
Why Is Talent Shortage Capping Bursa Semiconductor Earnings?
Global semiconductor sales rose 135.1% y-o-y and 6.4% m-o-m to US$146.8 billion in July, MBSB Investment Bank said on Sept 29. That marks 17 months of sequential growth.
Local outsourced semiconductor assembly and test stocks are up between 41% and 53% year-to-date. D&O Green Technologies Bhd (KL:D&O) is the only covered name in decline, down 28% YTD.
Current PERs of 35 times to 42 times have surpassed the five-year mean, MBSB notes. The local industry needs around 50,000 engineers, but only 5,000 engineering graduates arrive annually.
The National Semiconductor Strategy targets 60,000 engineers by 2030. MBSB says the talent shortage has limited the potential earnings upside, and it keeps Inari Amertron Bhd (KL:INARI) as its top pick.
Key Takeaways
- Hong Leong Investment Bank Research expects Southern Cable Group revenue to reach a record RM600 million in 3Q26, with FY26 capacity fully booked.
- Hong Leong raised SCG’s FY26-FY28 earnings by 8%-11% and projects FY27 revenue growth of 17%.
- RHB Research deems Yinson‘s RM263 million first-half FY27 core net profit (+43% y-o-y) in line and keeps its forecasts unchanged.
- AWC’s India contracts are worth RM8.4 million and RM4.7 million, each running 36 months.
- Apex Securities maintains its ‘buy’ on AWC with an RM1.22 SOP target, fully diluted.
Frequently Asked Questions
What is Southern Cable Group’s expected revenue in 3Q26?
Hong Leong Investment Bank Research expects Southern Cable Group Bhd (KL:SCGBHD) revenue could reach a record RM600 million in 3Q26. That follows circa RM200 million of DC and 132kV orders won in 2Q26 entering peak delivery.
Is Yinson Holdings’ first-half FY27 profit in line with forecasts?
Yes, according to RHB Research, which deems the RM263 million core net profit in line. The figure is 30% of RHB’s FY27 forecast and 40% of consensus.
How much are AWC’s India smart-city contracts worth?
The Domestic Tariff Area contract is worth INR19.82 crore (RM8.4 million, inclusive of GST). The Special Economic Zone contract is worth INR11.03 crore (RM4.7 million, zero-rated for GST).
What is Apex Securities’ target price for AWC Bhd?
Apex Securities keeps its ‘buy’ on AWC Bhd (KL:AWC) with an unchanged SOP target price of RM1.22, fully diluted. The target is based on FY28F earnings.
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