PETALING JAYA: HSS Engineers Bhd
has entered into a memorandum of understanding (MoU) with Adani Infra (India) Ltd (AIIL) to explore potential collaboration on infrastructure development projects.
In a statement, HSS said the MoU establishes a non‑exclusive framework for cooperation between the parties.
It alignes with Adani Infra’s initiative towards development of partners to strengthen its project execution capabilities, under which HSS may provide engineering, technical advisory, design and project management consultancy services for infrastructure projects undertaken by AIIL and its affiliated entities in India and other international markets.
The MoU will remain valid for a period of three years from the date of execution and may be extended upon mutual agreement between the parties.
Meanwhile, analysts believe that earnings visibility for HSS is expected to improve following its latest contract win linked to irrigation infrastructure.
The job adds to the group’s growing order book and supports its prospects in the water-related engineering segment.
According to Apex Securities, the award should contribute meaningfully to HSS medium-term earnings profile as the project runs over the next several years.
“We view this contract win positively as it enhances the group’s earnings visibility through 2030,” the brokerage said.
“Based on an estimated gross margin of 35%, the project is expected to generate about RM10.7mil in gross profit over its 52-month duration, equivalent to 13.0% of our 2026 estimated gross profit,” it added.
Given HSS’ track record in executing water-related projects, Apex Securities said execution risk remains manageable.
It maintained its “buy” call on HSS, with an unchanged target price of 50 sen based on its sum-of-parts valuation.
HSS recently secured a RM30.5mil contract from MMC Infra Padi Sdn Bhd to provide engineering consultancy services for Phase 2 of the Jeniang Water Transfer Scheme Project.
Work on the project is expected to begin in March 2026 and is scheduled for completion by June 2030.
Following the latest award, HSS’ year-to-date contract wins increased to RM65mil, bringing its outstanding order book to about RM2.2bil. This translates into a book-to-bill ratio of 9.2 times, suggesting strong revenue visibility ahead.
The group also holds a tender book worth RM517mil and is targeting RM300mil in new contract wins for 2026, supported by opportunities in domestic water treatment, flood mitigation and data centre-related infrastructure.
