KUALA LUMPUR: Engineering and project management consultant, HSS Engineers Bhd (HEB) is eyeing RM500mil new contract wins in the current financial year, as it bids for RM375mil worth of projects.
Executive vice chairman Tan Sri Ir Kuna Sittampalam, in a statement, said that apart from tendering for projects within the group’s core expertise in the rail, road and water sectors, it was keen on opportunities from emerging-yet-crucial themes such as road privatisations, flood mitigation, and the digital and technology sectors.
“Our revenue diversification strategy is bearing fruit, as we establish multiple sources of income from high-growth sectors that will propel our prospects going forward
“This includes our maiden venture into the digital and technology sector, as we were appointed by Digital Nasional Bhd to provide consultancy services for the implementation of Malaysia’s 5G infrastructure and network, he said, adding that it also hopes to play a role in supporting the set-up of data centres in the country.
On the regional expansion front, HEB has formed strategic collaborations with Japanese consultants to participate in projects funded by the Japanese International Cooperation Agency (JICA) and other projects in these countries.
“In this regard, we have commenced supervision services for North-South Commuter Railway Extension (NSCR-EX) project in the Philippines through our Japanese partner, Oriental Consultants Global and will commence supervision services for the Chennai Metro Phase 3 with Nippon-Koei in the fourth quarter of 2022,” Kuna said.
He noted that various mega infrastructure projects are expected to be rolled out in the second half of 2022, such as the various flood mitigation projects, Pan Borneo Phase 1B and MRT 3.
“These would undoubtedly further boost our current order book of RM516.7mil.
“Furthermore, the national development agenda outlined in the 12th Malaysia Plan paints a rosy outlook for our long-term prospects as a key engineering services enabler. HEB Group is poised to facilitate the advancement of infrastructure development in Malaysia,” he added.
Meanwhile, HEB shareholders also approved all the resolutions tabled at the annual general meeting held today.
At the subsequent extraordinary general meeting, shareholders had also approved the proposed variation and extension of timeframe for the utilisation of balance proceeds raised from its initial public offering (IPO) amounting to RM18mil.
Under the proposed variation, HEB intends to earmark a total of RM6mil of balance IPO proceeds for the combined purposes of expansion into India and Asean, and the venture into recurring income and long term-based contracts with a focus within the power sector.
The remaining proceeds of RM 12mil would be reallocated for partial repayment of borrowings for the acquisition of SMHB Engineering.
Shareholders also approved extending the timeframe for the utilisation of balance IPO proceeds to Dec 31, 2023 from Dec 31, 2021.