KUALA LUMPUR (Aug 26): Southern Cable Group Bhd (KL:SCHBHD), which manufactures power cables and wires, is bullish on its outlook as it posted a 28.2% jump in its second-quarter net profit from the corresponding quarter a year ago.

Net profit for the three months ended June 30, 2026 (2QFY2026) rose to RM40.57 million from RM31.64 million for 2QFY2025 amid robust demand from data centres and renewable energy build-outs, as well as upgrades to the national grid, its bourse filing on Wednesday showed.

Revenue grew 25.8% to RM527.62 million from RM419.3 million on average selling price adjustments and higher sales volume, which was also supported by an enlarged production capacity.

An interim dividend of 1.2 sen per share was declared, to be paid on Oct 12.

For the first six months ended June 30, net profit rose 24.9% to RM73.73 million from RM59.05 million, as revenue increased 18.5% to RM960.28 million from RM810.11 million.

Prospects in the quarters ahead remain positive, Southern Cable noted, underpinned by rising demand for power cables and wires as renewable energy initiatives accelerate under the National Energy Transition Roadmap (NETR), ongoing data centre expansion nationwide and enhancements to the national grid.

This favourable demand environment has translated into robust order inflows, it added. The group’s orders in hand stood at RM1.36 billion as at end-June, providing earnings visibility until 2028.

“To meet growing demand, the group is also advancing its cable and wire capacity expansion through the addition of new production machinery and upgrades to existing facilities. By end-2026, the group’s annual cable and wire capacity is expected to increase by approximately 5,000km to 60,000km, with a further expansion to 65,000km by end-2027,” it said.

Shares of Southern Cable ended five sen or 1.98% higher at RM2.58 on Wednesday, valuing the group at RM3.29 billion. The stock is up about 31% from a year ago.