In the midst of the current surge in IPO offerings, one existing listed entity stands out for its exciting potential and intriguing links to the IPO market: Southern Score Builders Bhd (SSB8). Not only is it an already established player in Malaysia's construction industry, but its connections to the upcoming Radium Development Bhd IPO make it a particularly compelling prospect for investors.

Southern Score Builders Bhd (SSB8), listed on Malaysia's ACE Market, offers a comprehensive range of services that go beyond traditional construction. From project management, planning, and design to feasibility studies, SSB8 excels in every facet of the construction process. The company's significant standing is further bolstered by the Gan family's ownership, a name synonymous with successful property development companies such as Platinum Victory Sdn Bhd and the soon-to-be-public Radium Development Bhd.

But what truly sets SSB8 apart is its innovative hybrid construction model, offering a one-stop solution to landowners who may lack the necessary expertise in property development. This model allows SSB8 to guide projects from funding to execution, ensuring greater control and resulting in superior cost management, and, in turn, potentially higher profit margins. This strategic approach is already paying off, with the company's net margin soaring from 9.72% in FY2019 to an impressive 13.7% in FY2022.

As of December 31, 2022, SSB8's financial strength is demonstrated by its robust net cash position of RM108.2 million. In the first half of FY23 alone, SSB8 recorded revenue of RM110.47 million and a pre-tax profit of RM9.46 million, a testament to its consistent financial performance. Additionally, the company maintains a virtually debt-free status, with total borrowings standing at a mere RM126,000 as of the end of 2022.

So, what's on the horizon for SSB8? Currently, 76% of SSB8's order book comprises third-party projects, with the remaining 24% being related-party projects. However, the company plans to shift its focus towards more projects from its major shareholders' privately-owned companies (Radium & PV), foreseeing related-party projects to make up 60% of the order book in the future.

At present, SSB8 shares are trading at RM0.215. Notably, its dividend yield stands at a remarkable 4.44%, surpassing many other construction companies in the market. With the anticipated rise in profitability and continued strong performance, investors could potentially see the dividend yield escalate to 5-6% in the future.

The innovative approach, strategic planning, and robust financial standing of SSB8 make it a compelling investment prospect in the construction industry. As the company continues to evolve and adapt, it could very well redefine the boundaries of success in the sector.