KUALA LUMPUR: Engineering and project management consultant, HSS Engineers Bhd (HEB) is targeting to secure new contracts worth RM300 million for the financial year ending Dec 31, 2023 (FY2023).
Executive vice-chairman Tan Sri Kunasingam Sittampalam said the group has a tender book worth RM415 million, with a 50 per cent success rate based on its track record for engineering design, supervision and project management.
He said the rail segment comprised 50 per cent of the total tender book, while water constituted 25 per cent, highway (15 per cent), and infrastructure (10 per cent).
"These (projects) are purely in Malaysia where bids have been called, and do not include overseas (projects)," he told a virtual press conference after the company’s annual general meeting today.
Kunasingam said the 2023 target was lower than the RM500 million target in 2022 as it was set earlier this year when there were a lot of uncertainties in the market, including the local political scenario.
"We will relook at this target in the second half of the year.
"With the rollout of the light rail transit in Penang, Rapid Transit System Link in Johor, flood mitigation (projects), Pan Borneo Highway (being announced)...maybe we should move our target northwards," he said.
Meanwhile, Kunasingam said HEB expects its newly-ventured segment -- data centre -- to contribute up to 15 per cent to the group's total revenue in the next five years given its promising prospects going forward.
He said the group has made good strides in supporting Malaysia’s burgeoning data centre space and had recently secured a RM8.9 million contract to provide professional engineering design and consultation services for the proposed Infinaxis Data Centre Sdn Bhd’s data centre in Cyberjaya.
This was preceded by the group winning an RM8.8 million contract in January 2023 to provide project management consultancy services for the Yellowwood data centre and its electrical substation in Sedenak Tech Park, Johor, he said.
At present, HEB's order book stands at RM1.4 billion which include major high-impact national projects such as project management consultancy works for Mass Rapid Transit 3 (MRT 3) and Pan Borneo Sabah Highway Phase 1, engineering services works for the East Coast Rail Link, Iskandar Bus Rapid Transit, and projects in the water sector. - Bernama