Engineering and project management consultant HSS Engineers Berhad achieved its commendable net profit of RM15.1 million for the financial year ended 31 December 2022 (FY2022) on higher billings and enhanced service mix, mainly from Project Management Consultancy (PMS) services for the Mass Rapid Transit 3 (MRT3).
The five-fold boost in FY2022 net profit from RM3.0 million in the year earlier followed the 12.9% rise in group revenue to RM185.9 million in FY2022 from RM164.7 million in the prior year, contributed mainly from the PMC and Engineering Services segments.
The PMC segment showed highest growth with 89.5% higher revenue of RM52.8 million in FY2022 compared to RM27.9 million previously, derived from works done for MRT3, Pan Borneo Sabah Highway (Phase 1) and Project Delivery Management Office for the Northern Corridor Economic Region (NCER).
The Engineering Services segment made up the largest proportion of topline at RM94.7 million in FY2022 versus RM126.3 million a year ago, as revenue from the newly-secured project of Peer Review Consultancy Services for MRT3 was offset by lower revenue from the East Coast Rail Link (ECRL) and Bus Rapid Transit (BRT) in line with project progress.
For the fourth quarter ended 31 December 2022 (4Q22), group net profit turned around to RM3.6 million from net loss of RM0.7 million a year ago, as topline expanded 83.3% to RM71.3 million from RM38.9 million previously.
HEB Group’s RM1.5 billion current order book is to be billed progressively over the next eight years.
This includes contract wins year-to-date such as PMC services to Yellowwood Properties Sdn Bhd for a new data centre campus and its electrical substation at Sedenak Tech Park, Johor; Owner’s Engineer Services For Life Extension Program of Sungai Perak Hydroelectric Station through the AFRY-SMHB Consortium; as well as consulting and technical services for Bangladesh Railway’s Railway Connectivity Improvement Preparatory Facility Project in Dhaka with Japanese and French joint venture partners.
HEB Group Executive Vice Chairman Tan Sri Kuna Sittampalam said that HEB Group’s outstanding performance as well as growth aspirations in Malaysia and region provided a clear runway for the Group’s long-term prospects.
HSS Engineers Berhad Executive Vice Chairman Tan Sri Ir. Kuna Sittampalam said: “We are extremely exhilarated to mark a victorious FY2022, not only by beating the odds with our record-high bottomline, but also marking our best-ever outstanding order book that will enable us to mark a firm uptrend in the coming years. We are certainly thrilled for the vote of confidence to steer Malaysia’s key mega projects in the mission-critical urban transportation, water, and digital infrastructure space.
The firm establishment and rousing start for the unity Government, based on steadfast principlesof governance, has placed Malaysia on the cusp of a second take-off, with the strongest evidence being the pledge of Foreign Direct Investment to the tune of multi-billion Ringgit from global giants that would propel the nation’s development forward in a sustainable and convincing manner.
As the homegrown engineering partner who has harnessed our reputation and staked our commitment on realising Malaysia’s aspirations, we remain steadfast in our endeavour to enable Malaysia attain her rightful standing as one of ASEAN’s formidable economic forces.”
Malaysia had secured RM13 billion in FDI at the end of its mission in Singapore in end-January 2023, whose investments are scheduled to be operationalised within the next three years.
Notably, these investments are for high-value advanced technology-based investments including hyperscale data centres and cloud services, therefore positioning HEB Group favourably to provide project management consultancy and engineering services.
Further elaborating on the Group’s prospects, Tan Sri Kuna Sittampalam said: “We continue to pursue high aspirations for the Group, backed by our track record of engineering expertise for major mega infrastructure projects in Malaysia as well as our growing repute overseas. Our recent inroads into emerging sectors such as digital infrastructure such as telco and data cemtres, coupled with successful market penetration beyond Malaysia, certainly bode well for our future outlook.”
