PETALING JAYA: HSS Engineers Bhd is eyeing RM500 million new contract wins in the current financial year, as it bids for RM375 million worth of projects.
Its executive vice-chairman Tan Sri Kuna Sittampalam (pix) said that apart from tendering for projects within the group’s core expertise in the rail, road and water sectors, it is keen on opportunities from emerging-yet-crucial themes such as road privatisations, flood mitigation, and the digital and technology sectors.
“Our revenue diversification strategy is bearing fruit, as we establish multiple sources of income from high-growth sectors that will propel our prospects going forward. This includes our maiden venture into the digital and technology sector, as we were appointed by Digital Nasional Bhd to provide consultancy services for the implementation of Malaysia’s 5G infrastructure and network,” he said.
HSS hopes to play a role in supporting the set-up of data centers in the country. On the regional expansion front, it has formed collaborations with leading Japanese consultants to participate in projects funded by Japanese International Cooperation Agency and other projects in these countries. In this regard, it has commenced supervision services for North-South Commuter Railway Extension project in Philippines through its Japanese partner Oriental Consultants Global and will commence supervision services for the Chennai Metro Phase 3 with Nippon-Koei in the fourth quarter 2022.
“Various mega infrastructure projects are expected to be rolled out in the second half of 2022 such as the various flood mitigation projects – Pan Borneo Phase 1B and MRT 3. These would undoubtedly further boost our current order book of RM516.7 million,” said Kuna.
He added that political risks could affect any projects, but the government has been supportive of current projects.
“There’s always a risk, one cannot ignore the risk but if you look at the projects that the government has rolled out now, both the previous government as well as the present government have been supportive of, namely the flood mitigation, the Pan Borneo and the MRT3 (projects). So, in these three projects, there’s much lesser political risk,” he told reporters during a virtual press conference after its AGM today.
At the subsequent EGM, shareholders approved the proposed variation and extension of timeframe for the utilisation of balance proceeds raised from its initial public offering (IPO) amounting to RM18 million. Under the proposed variation, the group intends to earmark a total of RM6 million of balance IPO proceeds for the combined purposes of expansion into India and Asean, and the venture into recurring income and long term-based contracts with focus within the power sector. The remaining proceeds of RM12 million would be reallocated for partial repayment of borrowings for the acquisition of SMHB Engineering. Shareholders also approved to extend the timeframe for the utilisation of balance IPO proceeds from Dec 31, 2021 to Dec 31, 2023.