PETALING JAYA: Engineering and project management consultant, HSS Engineers Bhd (HEB) achieved robust financial performance in the third quarter ended Sept 30, 2024 (Q3’24) as net profit soared 39.9% to RM7.2 million, from RM5.2 million in the corresponding quarter last year, buoyed by the group’s successful expansion strategy and diversified project portfolio across domestic and international markets.
The higher net profit in Q3’24 was achieved on the back of a 6.3% increase in group revenue to RM50.4 million from RM47.4 million in the same quarter last year. The project management consultancy segment was the leading contributor to revenue growth, which registered an increase of 20.2% to RM25.1 million in Q3’24 from RM20.9 million previously, driven mainly by revenue recognised from the Baghdad Metro project in Iraq, secured in June.
The group boasts a record-high order book of RM2.1 billion with a growing presence abroad, undertaking key infrastructure projects in Iraq, Cambodia, Indonesia, the Philippines and Bangladesh.
In a statement issued today, HEB said it aims to derive 25% of its revenue from overseas ventures by 2027.
The strong order book includes major domestic projects such as Phase 1A of the Pan Borneo Highway Sabah, Subang Airport Redevelopment Master Plan, Klang Valley Double Tracking Phase 2, East Coast Rail Link, as well as various water system upgrade projects.
The engineering design segment’s Q3’24 revenue increased 3.6% to RM9.7 million from RM9.4 million in the previous corresponding quarter, mainly due to revenue from the Subang Airport redevelopment.
For the nine-month period ended Sept 30, 2024, the group recorded revenue of RM141.6 million and net profit of RM14.5 million, a decline of 0.4% and 1.5%, respectively, compared to the same period last year.
HEB is actively tendering for RM483 million worth of projects across various sectors while diversifying its portfolio for additional growth avenues.
HEB executive vice-chairman Tan Sri Kuna Sittampalam said the group aims to derive 25% of its revenue from overseas ventures by 2027, supported by a recently inked joint venture with Opus International to explore infrastructure-related opportunities in Southeast Asia and the Middle East, as well as strategic partnerships with leading Japanese engineering consultancies.
On the domestic front, he added, HEB is making a bold pivot toward high-growth sectors such as data centres, renewable energy and innovative technology solutions, all while reinforcing their deep-rooted expertise in rail, highways, ports and water infrastructure.
Meanwhile, he said, its tech-driven subsidiary, HSS ProPick Technologies, is poised for growth, rapidly advancing in the design and development of forward-thinking digital transformation solutions for industries such as agriculture, telecommunications, and construction.
“Additionally, our Sarawak-based subsidiary, HSS Alliance, is making impressive strides and will play a pivotal role in the state’s ambitious infrastructure initiatives,” he added.
