Latest news with #HSSEngineers
New Straits Times
31-07-2025
- Business
- New Straits Times
HSS Engineers' chairman steps down
KUALA LUMPUR: HSS Engineers Bhd says Datuk Mohd Zakhir Siddiqy Sidek has stepped down as its chairman effective July 31. He wants to pursue other commitments and responsibilities outside the company and focus on other ongoing professional priorities, HSS Engineers said in a statement. Mohd Zakhir, 58, served on HSS Engineers' board from April 17, 2015 and was also a member of the audit and risk management committee. Datuk Seri Ismail Md Salleh, a senior independent non-executive director, will assume the role of acting chairman on Friday. HSS Engineers said over the past decade as chairman, Mohd Zakhir played a pivotal role in guiding the company through several significant milestones. He oversaw the company's initial public offering and listing on the ACE Market of Bursa Malaysia in 2016, followed by its successful transfer to the Main Market in 2017. He provided strategic oversight during the acquisition of SMHB Engineering Sdn Bhd, which strengthened the company's engineering consultancy capabilities and leadership in infrastructure and water-related projects. HSS Engineers executive vice chairman Tan Sri Ir Kuna Sittampalam said Mohd Zakhir's strategic vision was instrumental in taking it public and advancing key corporate initiatives, including the acquisition of SMHB. "We are immensely appreciative of his invaluable contributions and unwavering support, which have laid a solid foundation for the company's continued growth," he added.
New Straits Times
25-06-2025
- Business
- New Straits Times
HSS Engineers' associate firm bags transport modernisation job in Philipines
KUALA LUMPUR: HSS Engineers Bhd's associate company HSS Integrated Sdn Bhd has secured a contract worth an estimated US$4.54 million (RM19.3 million) for the Davao public transport modernisation project in the Philippines. HSS Engineers said HSS Integrated, in a joint venture (JV) with Oriental Consultants Global Co Ltd of Japan (OCG), has been appointed by the Philippines' Department of Transportation to provide general consultant services for the project. OCG will act as the lead partner while HSS Integrated is a JV member. The project, which began in May 2025, is expected to run for 42 months. The scope of work includes project and contract management, risk and quality control, communication management, environmental and social compliance, economic benefit analysis, tender support and anti-corruption measures. "The JV will also oversee civil works through design reviews, construction monitoring, quality assurance, safety and cost management. "Additionally, it will manage diesel or electric bus procurement, including design review, testing, inspection, site preparation, and commissioning," the company said in a filing to Bursa Malaysia today.. The value attributable to HSS Integrated includes US$4.01 million (RM17 million) in professional fees and US$534,400 (RM2.27 million) in reimbursable expenses. HSS Engineers said the contract will be executed in collaboration with HSS Engineering Sdn Bhd (HSSE), its wholly-owned subsidiary, through an exclusive teaming arrangement. The company expects the project to contribute to its revenue, earnings and net assets from the financial year ending Dec 31, 2025 until 2028. The project will be funded via internally generated funds and external borrowings.
New Straits Times
19-06-2025
- Business
- New Straits Times
HSS Engineers: Stacked with jobs, starved of returns
KUALA LUMPUR: At first glance, HSS Engineers Bhd appears to be a gem among Bursa Malaysia's small-cap infrastructure players. With major projects under its belt including Malaysia's MRT3 and the ambitious Baghdad Metro in Iraq, the company seems to stand at the crossroads of growth and regional expansion. But take a closer look, and the shine begins to fade, market observers said. Despite a solid order book and some impressive contract wins, HSS Engineers' shares have quietly lost over one-third of their value in 2025. The observers said the reasons are more structural than cyclical, prompting serious doubts about the investment-worthiness of HSS in its current configuration. Strong Projects, Weak Profits HSS Engineers has never had a problem winning jobs. The challenge has always been turning those jobs into meaningful and sustainable profits. In the first quarter of its financial year 2025, the company reported a 64 per cent drop in net profit despite higher revenue. Margins were squeezed to just about three per cent, down from some 7.0-9.0 per cent in previous years. Cost inflation, new hires and teething issues from overseas projects all contributed, but the bigger issue is clear: growth is not translating into shareholder returns. The Baghdad Mirage When HSS Engineers announced its RM1.5 billion contract to oversee Iraq's Baghdad Metro, investors cheered. The share price rallied. It looked like the company had finally broken into big-league regional infrastructure. But nearly a year later, reality has hit. Only a fraction of that revenue has been recognised, and progress is slower than expected. As investors wait for billings to ramp up, HSS Engineers is bleeding cash on early-stage project costs. Worse, Iraq brings serious geopolitical and payment risks - risks that small Malaysian engineering firms may not be fully equipped to navigate. Overdependence on Government Projects HSS Engineers' bread and butter lies in public-sector infrastructure - railways, highways and water projects. The observers said while this provides a steady pipeline, it also leaves the company exposed to the whims of politics. MRT3, for instance, has seen delays and policy back-and-forth. "A change in government priorities or funding cutbacks could mean stalled payments or suspended jobs. That's not a great setup for consistent earnings," they said. Low Dividend, Thin Liquidity The observers said for retail investors seeking passive income, HSS Engineers offers little: its dividend yield is just 1.4 per cent, and it pays once a year. For institutional investors, the stock lacks liquidity. Daily trading volumes are modest, and even moderate selling can move the price. It's a classic case of small-cap vulnerability - long on ambition, short on financial resilience. Communicaton Gap In a volatile market, the observers said, clarity of direction matters more than ever. Investors are not just buying current performance - they're buying the promise of what's to come. Unfortunately, this is where HSS Engineers has fallen short. While the company has outlined its "HSS 2.0" roadmap to diversify into renewable energy, data centres and other future-facing sectors, the messaging around this strategy has been vague. On June 11, at a press conference, HSS Engineers made a notable announcement: it's bidding for four data centre projects, highlighting its ambition to expand in the high-growth digital infrastructure space. The company also reaffirned that its robust RM2.1 billion order book will ensure earnings visibility for the next eight years. This would reinforce the momentum gained from its record-high net profit of RM25.2 million in the financial year ended Dec 31 2024, it added. Still, the data centre bids in particular show intent more than substance, the observerd said. "The market has yet to see concrete follow-through - no specific projects have been awarded, timelines are vague and there's no clarity on expected margins or revenue recognition." Until these data centre wins turn into billable, profitable work, they remain another line item in a long list of aspirational projects, much like the Baghdad Metro before it. Strategy without execution means margins stay under pressure. Press conferences are a start, but the company needs specific, data-backed updates, the observers said. "For instance, 'Data Centre A awarded by Q3, with expected XXX profit by year end' to reassure investors and inspire confidence," they added. The observers said the lack of clarity might have been mitigated by strong shareholder communication, a proactive effort to engage investors, explain strategy and build trust. HSS Engineers' communication with the investment community has been sporadic and reactive, rather than strategic and forward-looking. Without consistent engagement, even good stories get lost and undervalued.
New Straits Times
11-06-2025
- Business
- New Straits Times
HSS Engineers bullish about FY2025, beyond due to projects diversification
KUALA LUMPUR: HSS Engineers Bhd remains optimistic about its growth outlook for the financial year ending Dec 31, 2025 (FY25) and beyond, as it ramps up efforts to expand and diversify its project portfolio across various sectors and international markets. HSS Engineers said it had increased its involvement in emerging, high-growth industries to widen its sectoral reach, while continuing to maintain a strong foothold in its core infrastructure areas including highways, roads, rail, ports and water systems. It also highlighted the rapid growth of the data centre industry, projecting continued momentum in this space, driven by supportive government policies and strong foreign investment. "Concurrently, the group's tech-based subsidiary HSS Propick Technologies Sdn Bhd (HSS Propick), a provider of artificial intelligence (AI) powered drone solutions, is undertaking an expansive telco tower digitalisation project for one of Southeast Asia's largest telco tower companies. "HSS Propick encapsulates the group's focus on innovation, harnessing its deep-rooted engineering expertise to deliver AI-powered infrastructure solutions," it added. HSS Enegineers said it is poised to play a key role in Sarawak's fast-paced industrialisation, with its local associate company HSS Alliance (Sarawak) Sdn Bhd, nearing substantial growth as it positions itself as a trusted one-stop engineering partner for the state's large-scale infrastructure transformation. HSS Engineers executive vice chairman Tan Sri Ir. Kuna Sittampalam said it had demonstrated agility by adapting its business model to meet the rapidly evolving engineering needs of various industries. "Building on our success in AI-powered drone solutions to data centres and solar power generation, we are rapidly expanding our capabilities to take a leading role in emerging industries that are set to reshape the region. "Our timely diversification strategy will pave the way for sustainable growth and long-term value creation," he said. During the annual general meeting, Kuna reaffirmed that the company's robust RM2.1 billion order book will ensure earnings visibility for the next eight years, reinforcing the momentum gained from its record-high net profit of RM25.2 million in the financial year ended 31 December 2024 (FY2024). The order book comprises major projects such as the Pan Borneo Highway Sabah Phase 1A, Westport 2 Expansion Development, Klang Valley Double Tracking (KVDT) Phase 2, East Coast Rail Link (ECRL), Jajaran Rel Selangor Kita, as well as numerous water infrastructure and data centre developments across Malaysia, along with several international projects. It continues to maintain a solid tender book worth RM475 million as it actively seeks new opportunities both locally and overseas.
