Hock Seng Lee Q1 earnings higher at nearly RM14m

HSL and Dhaya Maju Infrastructure (Asia) Sdn Bhd jointly clinched a RM1.71bil contract to develop and upgrade a stretch of the proposed Pan Borneo Highway in Sarawak, covering a section of the highway from Bintangor to Julau, and Sibu Airport to the Sungai Kua Bridge.

KUALA LUMPUR: Sarawak infrastructure company Hock Seng Lee Bhd (HSL) posted an improved set of results for the first quarter ended March 31, 2018 with earnings higher at RM13.77mil.

It announced on Thursday the earnings were up nearly 23.4% from RM11.16mil a year ago. Its revenue increased at a stronger pace of 38.8% to RM131.76mil from RM94.92mil. Earnings per share were 2.51 sen compared with 2.03 sen.

HSL said certain comparative figures were restated as the group fully adopted the Malaysian Financial Reporting Standards (MFRS) for its financial year starting Jan 1, 2018.

Its group managing director Datuk Paul Yu said HSL was on a growth trajectory and “as we iron out the issues which have hampered our mega projects, we are also seeing our margins improve”.

“The year ahead will continue to be busy as HSL sets about executing an order book which remains at an historical high of RM3bil.

“We still have RM2.5bil unbilled, so there is ample work to be done and revenue to be realised,” he added.

Yu also said there was likely some uncertainty during the transition of power that may unsettle the market temporarily after the new federal government led by the Pakatan Harapan coalition.

“There has been some impact on our share price recently, but it is now rebounding and we know the
fundamentals of the company are strong,” said Dato Paul Yu.

“I can assure that there is no material event that has precipitated this. In fact our mega projects and the 16 or so other projects we have across Sarawak are progressing well,” he added.

Mega infrastructure contracts underway include the Pan-Borneo Highway work package seven which links Bintangor to Julau Junction, Btg Rajang Bridge and Sibu Airport to Sg Kua and the centralised waste water management (sewerage) systems for Miri city and Kuching (Package 2).

As at the end of April 2018, the Pan-Borneo Highway works had reached 25% completion with the Kuching wastewater works at 5% and the Miri wastewater works at 15%.

“As an accomplished, hands-on Sarawakian contractor with good track record undertaking vital public sector infrastructure projects which are by and large procured in open tender, we remain optimistic on our prospects,”  Yu said.