In a statement today, the cable and wire manufacturer said the deal followed an addendum contract of more than RM30 million secured in April 2023, boosting the group’s total contract value from TNB to RM422.5 million from RM332.1 million previously.

Managing director Tung Eng Hai said the contract further affirmed its positive outlook on the demand for cables and wires on the back of Malaysia’s power infrastructure needs, and underscored TNB’s trust in the company.

“With our long-established track record of serving the nation’s power utility companies, we are optimistic of securing more wins to fuel our growth while supporting Malaysia’s infrastructure development,” he said.

Southern Cable said sales of power cables and wires typically comprise more than 80% of the group’s annual revenue.

Current orders in hand are valued at RM692.7 million to be fulfilled by 2024. Besides power cables and wires, they also include related products and services, such as aluminium rods, and supply and installation of rectifier systems for 5G network, the statement said.

From the financial years ended Dec 31, 2020 right up to 2022, sales of power cables and wires jumped from RM458.4 million to RM749 million, giving a compounded annual growth rate of 27.8%, the statement said.

Apart from TNB, the group also supplies to other utility providers such as Sabah Electricity Sdn Bhd and Sarawak Energy Bhd, it added.