KUALA LUMPUR: Engineering and project management consultancy HSS Engineers Bhd
is confident of meeting its RM300mil target of project replenishment for the financial year ending Dec 31, 2026 (FY26).
HSS Engineers executive vice-chairman Tan Sri Kuna Sittampalam said at a media briefing.
This followed the company’s annual general meeting, that the RM300mil target would come from a combination of overseas projects in joint ventures with Japanese and Indian partners as well as projects in Malaysia.
As of May 31, the company has secured RM90mil of new contracts, with an unbilled order book of RM2.1bil providing earnings visibility from eight to 10 years.
It has an active tender book of RM525mil.
Kuna admitted that the company “is looking at something big with Adani right now”.
The company has also set a target to have overseas ventures account for 25% of revenue by FY27 under its growth strategy.
In FY25, overseas ventures contributed to about a fifth of total revenue.
“This year, with our association with Adani, I think, probably, we might meet the target sooner than 2027,” he said.
HSS Engineers entered into a memorandum of understanding with Adani Infra (India) Ltd in March to explore collaboration on infrastructure projects.
“We are looking at jobs in the near future, one of them is the Johor elevated autonomous rapid transit (E-Art),” he said.
“The E-Art project was approved by the government in May and comes with a RM10bil price tag.”
Kuna added the company was in the midst of discussing with a client who had just won a privatisation bid as part of a consortium.
“So, we think we will definitely meet our target of RM300mil this year,” he added.
Kuna said work on the Baghdad Metro project in which the company acts on a project management consultancy (PMC) basis “is ongoing”.
He pointed out that progress temporarily stalled due to the election of a new government in Iraq that took office last month.
He added the new government wants the project to be expedited.
“We’re taking the prudent approach by not recognising revenue from the Baghdad Metro at this stage for this year,” he said, stressing that there would be no impact from the delayed payment, in which the first payment would be made next month.
CGS International Research said in a report dated May 20 that the company expects payment over several tranches to be fully disbursed by the first half of FY26.
The company’s order book from the project amounts to RM633.7mil.
Kuna also said the Gulf states have interest in developing rail infrastructure and the company has been in discussion with a few governments in the region.
“How much of this will be realised, we don’t know.
“It’s very early stages,” he said, pointing to the Middle East conflict as the main obstacle in the plans crystalising.
The company also aims to leverage on its existing relationships with its Japanese partners to secure more jobs in Asean countries and India.
HSS Engineers has also collaborated with the Japanese in Indonesia, Philippines and India, with plans to expand to Vietnam and Bangladesh.
It expects to leverage on data centre (DC) projects, in which it has a pipeline of projects lasting up to two years in a PMC role, by bidding for the same role in water and power infrastructure projects catering to DCs, executive director Datuk Teo Chok Boo said.
