Latest news with #HSSEngineers'
New Straits Times
7 days ago
- Business
- New Straits Times
HSS Engineers clears Baghdad Metro hurdle, stock poised for 117pct upside
KUALA LUMPUR: HSS Engineers Bhd has cleared a major hurdle in its Baghdad Metro project, removing what analysts called "a key overhang" that had dragged its share price down 47 per cent over the past year. CGS International Research maintained its "Add" call on the stock but trimmed its target price to RM1.38 from RM1.50 to factor in delays in the project. This represents an upside potential of nearly 117 per cent from Friday's close of 63.5 sen. CGS International said the stock is trading at five times its projected 2026 earnings, the lowest since 2022. It noted that HSS Engineers received the completion certificate on July 16 for the first 10 per cent milestone payment, worth about RM10 million, from the mayoralty of Baghdad. This paves the way for disbursement once the country's planning ministry approval process and United States dollar arrangements are completed. "We view this positively as this has been the key overhang for the share price," CGS International Research said in a note, adding that the payment is expected within 21 to 41 days. The milestone is expected to boost HSS Engineers' earnings in the second half of 2025 and turn operating cash flow positive in the fourth quarter, after a negative RM12.6 million in the first quarter. "With all the requirements met in order to receive this first payment, performance bond, opening of branch office and registration of local company, we expect the subsequent milestone payments to be much quicker," it added. As at June, HSS Engineers' project management consultancy work for the Baghdad Metro was 45 per cent complete and is now targeted for completion by end-2025, with construction supervision services to begin in the second half of 2026. The Baghdad Metro project accounts for about 30 per cent of the group's RM2.07 billion order book and carries a gross profit margin of between 40 and 45 per cent, above the 25 to 30 per cent margins of its other projects.
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.
