HSS Engineers Bhd executive vice-chairman Tan Sri Ir. Kuna Sittampalam
KUALA LUMPUR: HSS Engineers Bhd
(HEB) is tendering for RM415mil worth of projects in the rail, road and water sectors, according to executive vice chairman Tan Sri Kuna Sittampalam.
As at June 30, HEB’s unbilled order book stood at RM1.41bil of which 75% is contributed by the and project management consultant (PMC) segment, providing earnings visibility over the next eight years.
HEB said this was primarily driven by appointment of the HSS joint venture (formed by HSS Integrated Sdn Bhd and HSS Engineering Sdn Bhd) by MRT Lingkaran Sdn Bhd to undertake the PMC role for MRT Circle Line (MRT 3), which will contribute to the group’s top and bottom-line up to 2033.
“The continuity of the unity government aptly primes Malaysia for an economic resurgence, particularly as high-impact transport- and water-related infrastructure projects are accelerated in the second half of 2023. These infrastructure projects, including the Pan Borneo Phase 1B,
Penang and Johor Light Rail Transit (LRTs), and multiple flood mitigation initiatives nationwide, are valued at RM600mil.
“We are also optimistic of the positive indications on the Kuala Lumpur – Singapore High Speed Rail (HSR) project, as the Government’s initiation to solicit private sector interest to evaluate the construction of the project underpins its commitment to revive mega infrastructure projects in the country,” Kuna said in a statement.
“Beyond the infrastructure space, we are also heartened to make great strides in establishing our fourth vertical of recurring income stream, as a multi-party consortium including our subsidiary HSS Engineering Sdn Bhd had recently accepted a letter of notification from the Energy
Commission to develop a 29.99 Megawatt Solar PV Plant in Kuala Muda, Kedah,” he added.
In the second quarter ended June 30, HEB’s net profit jumped 36.3% to RM5.3mil, or earnings per share of 1.07 sen from RM3.9mil, or 0.79 sen a year ago.
Its revenue rose 29% to RM48.9mil from RM37.9mil in the previous year, in line with project progress of both operating segments.
For the six months ended 30 June 2023, the group’s net profit increased 48.0% to RM9.5mil compared to RM6.4mil previously, as revenue jumped 27.5% to RM94.7mil from RM74.3mil a year ago, depicting favourable product mix.
HEB has reduced its net gearing ratio substantially from 0.13 times to 0.07 times on reduced borrowings.
