HSS Engineers eyes RM300mil new job wins

HEB is bidding for four more data centres in Malaysia with an aim to expand locally before venturing overseas, said Kuna.

PETALING JAYA: HSS Engineers Bhd (HEB) will be tapping into new sectors such as data centres and renewable energy as it strives towards its order book replenishment target of RM300mil by end of 2023.

HEB executive vice-chairman Tan Sri Kuna Sittampalam said the group recently secured two contracts in providing consultancy services for the proposed Infinaxis Data Centre Sdn Bhd in Cyberjaya as well as Yellowwood data centre in Johor.

The RM18mil contract secured by HEB is said to be providing project management consultancy to the data centre in Cyberjaya, while the one in Johor, the group will be providing the engineering design and consultation services.

Kuna said HEB is bidding for four more data centres located in Malaysia with an aim to expand locally before venturing into overseas markets.

He continued by stating that the company hopes to increase the revenue from data centres and telecommunications by 10% to 15% over the following five years.

“We are beginning to see positive results in our revenue diversification strategy, particularly in the digital and technology segment, focusing on 5G telecommunications and data centres,” he said.

As for renewable energy, HEB expects to require a significant investment sum in order to increase renewable energy capacity in the country’s electricity supply system.

“This will lead to various opportunities for achieving growth as we explore developing solar projects or accumulative capacity of 250 megawatts within three years together with our strategic partner Shizen International Inc from Japan,” he added.

Kuna said HEB is still committed to its regional expansion plans as the group has formed strategic collaborations with leading Japanese consultants in which the projects are mostly funded by the Japanese government.

A total of US$360bil (RM1.66 trillion) has been provided to fund these infrastructure projects and HEB is expecting to sign a few more memoranda of understanding with other Japanese companies in the future.

“This is done in order for the company to grow through these partnerships by working together to carry out and implement these projects,” Kuna added.

Kuna also stated that the group may relook into its target of RM300mil for this year by the second half of financial year 2023 (2H23), considering the number of rollouts that has been announced.

This includes the Penang light rail transit (LRT), Johor LRT, the Pan Borneo Phase 1B as well as various flood mitigation projects which Kuna said will undoubtedly further boost HEB’s current order book of RM1.4bil.

HEB recently announced its results for the first quarter of 2023 ended March 31, in which the group said it had garnered a revenue of RM45.8mil and a net profit of RM4.22mil or an earnings per share of 0.85 sen.

With its AGM completed, the group has also announced its final single-tier dividend of 0.92 sen per share in which the dividend payout of RM4.5mil represents 30% of the group’s net profit for the financial year ended Dec 31, 2022,

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