HSS bullish on order book visibility

The group is also optimistic on projects such as the Petaling Jaya Dispersal Link highway (PJD Link) and Sungai Klang Expressway, which are new proposals by the private sector.

PETALING JAYA: HSS Engineers Bhd is confident of its order book visibility in the near future.

The group is also optimistic on projects such as the Petaling Jaya Dispersal Link highway (PJD Link) and Sungai Klang Expressway, which are new proposals by the private sector.

Its management had recently guided in a briefing for more upside to contract wins in the fourth quarter of this year and first quarter of 2022, driven by the revival of rail, highway, water and port infrastructure development.

This is a driver for order book replenishment and its management had recently guided for a 50% success rate for its RM423mil tender book, CGS-CIMB Research said.

“This does not include opportunities in the RM20bil-RM30bil mass rapid transit 3 (MRT3) project.

“The engineering and project management consultancy packages could be awarded ahead of MRT Corp’s third-quarter 2022 timeline for civil work tenders,” the research house said.

“During its post-third quarter 2021 results briefing, the group updated that operations have been back on track at full capacity since October, with a 100% employee vaccination rate,” it added.

HSS’ gross margins are also expected to rise from a low of 7.4% in the third quarter of this year to 13%-15% in the fourth quarter as the group’s deployment of engineers on key projects had resumed.

CGS-CIMB Research said the group’s outstanding order book stood at RM548.3mil as at end-September with RM192mil worth of new contracts secured.

HSS also noted that the latest RM2.7mil lead consultant contract for the master layout of Subang Airport secured from Malaysia Airports Holdings Bhd is a significant milestone that could lead to subsequent contract packages as the project progresses.

“The group has been shortlisted on several tenders, including those relating to the National 5G rollout and development of data centres. The RM423mil job-in-tenders has upside as it does not include MRT 3 and PJD Link highway,” it said.

HSS’ tender book comprised mainly the Kuching Urban Transportation System detailed design consultant, the 5.25MW hydroelectric power plant in Perak as an independent consultant engineer and two bids for the proposed data centre development in Nusajaya, Johor, as its project management consultant.

It also consists of the site management partner/commercial contract management for the national 5G rollout and the Free Zone Operating System and system integration at the Port Klang Free Zone.

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