The cable and wire manufacturer benefited from a RM38.3 million increase in the value of the group’s contract to RM332.1 million from RM293.8 million previously.

An addendum is an attachment to a contract that modifies the terms and conditions of the original contract, according to Investopedia.

“We adopt a positive outlook for 2023, as projects across various industries such as power, construction and infrastructure recorded strong returns in activity levels.

“Additionally, the re-tabled Budget 2023’s focus on high-impact projects will contribute to further growth in demand for cables and wires,” said MD Tung Eng Hai.

He said the contract addendum by TNB bolstered Southern Cable’s orders in hand for the year and this attested to the improving market conditions.

Furthermore, the group is also pursuing more business as tender flows for new projects have resumed in strength, thus supporting a positive outlook going forward, he added.

He noted that Southern Cable’s current orders in hand will be fulfilled until 2024.

For the fourth quarter ended Dec 31, 2022, the group posted a net profit of RM4.57 million, which is up 59% from a net profit of RM2.87 million in the corresponding quarter a year ago.

For the full year (FY2022), the group posted RM14.5 million in net profit, up from RM10.9 million in FY2021.

Southern Cable is optimistic about its prospects in 2023, noting that it received more orders from customers in Peninsular Malaysia, as well as in Sabah and Sarawak.

The group is primarily involved in manufacturing cables for power distribution and transmission, communications, as well as control and instrumentation applications.

“Southern Cable is currently applying UL certificates for several new products to target the US market,” it said in a Bursa filing on Feb 27.

“The Group is also in the process of formalising an agreement with a US-based customer to supply various power cables and wires,” it added.

At the close of trade, Southern Cable’s share price was up 1.61% or 0.5 sen to 32 sen, giving it a market capitalisation of RM247.94 million.