Southern Score Builders gets UMA query after shares rose to all-time high

• At the noon break on Tuesday, Southern Score shares had gained 0.74% or half a sen to 68.5 sen, valuing the builder at RM1.56 billion.

KUALA LUMPUR (May 28): Bursa Malaysia has issued an unusual market activity (UMA) query to Southern Score Builders Bhd (KL:SSB8), scrutinising the recent sharp rise in the ACE Market-listed construction outfit’s share price.

Shares in Southern Score have surged in the past few days, rising 21.5 sen or 46.24% from May 21’s close of 46.5 sen to a record high of 68 sen on Monday.

In a bourse filing on Tuesday, Bursa asked the builder if any corporate development regarding its business and affairs had not been announced, or whether there was any rumour, report or other possible explanation that may account for the trading activity.

Bursa advised investors to take note of Southern Score’s reply to the UMA query, which had yet to be issued at the time of writing.  

At the noon break on Tuesday, Southern Score shares had gained 0.74% or half a sen to 68.5 sen, valuing the builder at RM1.56 billion. Trading volume stood at 15.2 million shares.

Earlier this month, Southern Score announced that it was acquiring a 51% stake in electrical contractor SJEE Engineering Sdn Bhd for RM22.95 million cash to tap into new market segments within the construction value chain to expand its income stream. 

Southern Score said it would also be able to leverage SJEE’s technical expertise with a track record of more than 30 years in the business to enhance the group's current suite of capabilities to include electrical works, which are currently outsourced to subcontractors.

In February, the group secured a RM618.24 million contract from property developer Platinum Victory Development Sdn Bhd to construct two blocks of apartment suites in Setapak here.

For the second quarter ended Dec 31, 2023 (2QFY2024), Southern Score returned to the black with a net profit of RM6.62 million, versus a net loss of RM3.73 million a year earlier, mainly due to the absence of a one-off reverse acquisition expense of RM14.63 million incurred in 2QFY2023. 

Meanwhile, revenue declined 34% to RM39.17 million, from RM59.35 million previously, on the back of lower construction revenue due to the completion of the Vista Wirajaya 1 @ PV9 Residences in November 2022, and the Platinum Arena Residences in December 2022.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!