PETALING JAYA: Cable and wire producer Southern Cable Group Bhd

’s strong performance for the second quarter of this year (2Q25) is expected to continue into the second half of the year (2H25) on the back of a ramp up of additional capacity and the commencement of cable deliveries for the East Coast Rail Link project.

In a report to clients, Hong Leong Investment Bank Research (HLIB Research) said, moving into next year earnings growth should be further driven by the launch of the group’s high voltage cables and stronger sales in the US market.

The research house noted that the group is already a top-three supplier to a key US customer, with the customer currently requesting up to 100 containers per month.

This provides meaningful headroom for growth once an expansion project to increase their power cable production capacity is commissioned next year, HLIB Research said.

The group is also in the process of obtaining certification for three additional cable types, on top of its existing two approved products.

The new products carry higher margins, and successful commercialisation would further expand group margins, the research house said.

Meanwhile, power cable demand from the solar sector is also expected to strengthen as engineering, procurement, construction, and commissioning work for the fifth phase of the government’s Large Scale Solar (LSS5) initiative and LSS5+ commence next year.

The company’s 2Q25 net profit surged 119% to RM31.6mil, fuelled by expansion as revenue increased 33% to RM419.3mil on higher sales.

It also announced a first interim dividend of 1.2 sen per share for this year.