PETALING JAYA: Engineering and project management consultant HSS Engineers Bhd (HEB) saw its order book increase to an all-time high of RM2.1 billion in the second quarter ended June 30, 2024 (Q2’24), reflecting the group’s expansion and diversified project portfolio across domestic and international markets.
In a statement, the company said new contracts secured year-to-date, valued at RM850 million, have contributed to the record order book. Notably, the landmark Baghdad Metro project in Iraq, secured in June, represents a key addition, with the group to provide project management consultancy (PMC) and supervision services through a joint venture.
The robust order book includes ongoing projects such as PMC for Phase 1A of the Pan Borneo Highway in Sabah and lead consultancy for the Sultan Abdul Aziz Shah Airport (Subang Airport) redevelopment master plan, along with recent wins in Malaysia and Cambodia. The diversified order book, spanning multiple sectors and geographies, will be progressively recognised until 2032, ensuring sustained revenue growth for HEB Group.
HEB Group’s expansion into international markets is progressing well, with the new projects in Iraq and Cambodia complementing ongoing projects in Indonesia, the Philippines and Bangladesh, supporting its target of deriving 25% of revenue from overseas ventures by 2027.
The group remains confident in the Malaysian market, anticipating increased infrastructure spending and subsequent contract awards in the second half of 2024.
Executive vice-chairman Tan Sri Kuna Sittampalam said: “We made substantial international gains this year, securing our largest contract win to date with the Baghdad Metro project in Iraq, on top of the Phnom Penh-Bavet Expressway project in Cambodia. These wins will significantly boost our financial performance and underscore our growing influence in the global infrastructure space. We remain committed to achieving 25% of our revenue from overseas ventures by 2027.”
Domestically, he added, they also secured projects, such as the PMC contract for subsequent phases of the Yellowwood data centre in Johor and the engineering design and supervision contract for water systems upgrade in Pahang.
“We are optimistic about HEB Group’s prospects in the local market, as we anticipate the implementation of major infrastructure projects to gain momentum in the second half of 2024.”
With these tailwinds, HEB Group is poised for robust growth, said Kuna.
Meanwhile, HEB Group announced its Q2’24 financial results, recording revenue of RM43.8 million and net profit of RM2.8 million, representing a decrease of 10.3% and 46.5% respectively compared to the previous corresponding quarter. The decrease was primarily due to lower recognition from the Klang Valley Mass Rapid Transit PMC contract in line with the project’s progress.
HEB Group maintains a healthy tender book of RM483 million, as it proactively pursues opportunities across various sectors while strategically diversifying its portfolio for additional growth avenues.
