Southern Cable managing director Tung Eng Hai
KUALA LUMPUR: Southern Cable Group Bhd
is investing in increased production capacity to meet the growing demand for cables and wires in response to robust growth, according to managing director Tung Eng Hai.
“We continue to receive numerous enquiries from various industry players, including power transmission and distribution, construction, and infrastructure, as well as data centre builders.
“With the increasing demand for power to support new developments, Southern Cable is poised to see a new leap in the revenue base,” he said in a statement.
The cable and wire manufacturer’s net profit surged to RM14.4mil, or earnings per share of 1.79 sen in the second quarter ended June 30 (2Q24), more than doubling from RM5.3mil, or 0.67 sen in the corresponding quarter last year.
Southern Cable noted that the strong profit was driven by a 36.0% increase in revenue to RM315.3mil in 2Q24, from RM231.8mil previously due to higher sales volume for power, control and instrumentation cables and wires.
The higher revenue was due to higher raw material prices (copper and aluminium) and increased production capacity from a new facility at the group’s headquarters in Kuala Ketil, Kedah, which has an annual capacity of 5,000 km for low-voltage power cables and wires.
Southern Cable said by the end-2024, the full operation of the new facility is expected to raise the group’s annual capacity to 46,980 km, allowing the group to accommodate more orders and boost revenue.
The group’s current orders in hand stood at RM923.1mil, including a RM99.6mil contract from Tenaga Nasional Bhd, covering underground cables, rectifier systems, and engineering, procurement, construction, and commissioning (EPCC) contractor purchases, to be fulfilled by 2026.
In the first half ended June 30, Southern Cable’s net profit grew 171.8% to RM28.5mil, from RM10.5mil. The rise was on the back of a 32.7% higher revenue of RM627.4mil, compared to RM472.8mil previously, on increased sales volume of power cables and wires.
