HSS makes a foray into telecoms sector

Executive vice-chairman Tan Sri Kuna Sittampalam said: “We have been eyeing opportunities in the telecommunications sector in recent years, especially since the government has trained its sights on next generation technologies to fast-track the nation’s digital aspirations."

PETALING JAYA: HSS Engineers Bhd has bagged two framework services agreements worth RM2.82mil from Digital Nasional Bhd (DNB) to provide consultancy services for the implementation of Malaysia’s 5G infrastructure and network.

In a filing with Bursa Malaysia yesterday, HSS said the works included the commercial contract management, entire formal request process and negotiation for site leasing rate card and special conditions, as well as site management partner for post-site acquisition activities.

The contract period for 14 months started in November 2021.

In a statement yesterday, HSS said the appointments marked the group diversification into the telecommunication sector.

Executive vice-chairman Tan Sri Kuna Sittampalam said: “We have been eyeing opportunities in the telecommunications sector in recent years, especially since the government has trained its sights on next generation technologies to fast-track the nation’s digital aspirations.

“We are extremely excited to embark on this prestigious undertaking that will allow us to reprise our integral role in further enhancing Malaysia’s telecommunications infrastructure.

“This is a successful diversification in HSS’ customer base, complementing our prowess in the transportation, ports and water sectors.”He said DNB was mandated by the government to be the single neutral party for the deployment of 5G infrastructure and network nationwide.

“We believe that this consultancy services for DNB is a precursor to additional scopes of works for the group, and we reiterate our commitment to supporting the nation’s development,” Kuna added.

The project to contribute positively to the revenue, earnings and net assets for the financial years ending Dec 31, 2021 (FY21) and FY22, according to HSS.

For the third quarter ended Sept 30, 2021, it posted a net profit of RM255,000, down 92% from RM2.79mil a year earlier due to delayed earnings arising from the lower-than-expected mobilisation of employees for the Pan Borneo Sabah contract that was secured in April 2021.

Revenue for the quarter was slightly higher at RM42.95mil compared with RM42.04mil previously.

HSS has an order book of RM548.3mil of which 74% is mainly in the construction supervision and project management services.

Its tender book stood at RM423mil as of Sept 30, 2021.

According to CSG-CIMB Research, the projects include the Kuching urban transportation system, a 5.25MW hydroelectric power plant in Perak, two bids for the proposed data centre development in Nusajaya, Johor, site management partner/commercial contract management for national 5G rollout, and free zone operating system and system integration at the Port Klang Free Zone.

CGS-CIMB Research, in a recent report, expected HSS to win about RM150mil worth of contracts annually from FY22 to FY23.“We note that our order win assumption is conservative and does not include opportunities in the RM20bil to RM30bil Mass Rapid Transit line three project. Tenders are scheduled to be called in the second quarter of FY22,” the research house said.

Shares in HSS closed 3.5 sen lower to 51 sen each yesterday.