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KLSE: HSSEB       HSS ENGINEERS BHD
Last Price Avg Target Price   Upside/Downside Price Call
1.14 1.18     +0.04 (3.51%)
* Average Target Price, Price Call and Upside/Downside are derived from Price Targets in the past 6 months.
** Price Targets are adjusted for Bonus Issue, Shares Split & Shares Consolidation (where applicable).
Date Open Price Target Price Upside/Downside Price Call Source News
22/02/2019 0.91 1.16 +0.25 (27.47%) BUY Affin Hwang Capital Price Target News
28/01/2019 0.97 1.20 +0.23 (23.71%) BUY Affin Hwang Capital Price Target News
16/11/2018 0.935 1.18 +0.245 (26.20%) BUY Affin Hwang Capital Price Target News


Price Target Research Article/News (past 6 months)
22/02/2019  Affin Hwang Capital HSS Engineers - Kitchen Sinking
28/01/2019  Affin Hwang Capital HSS Engineers - Water Play
16/11/2018  Affin Hwang Capital HSS Engineers - 3Q: Strong Quarter



  3 people like this.
 
apolloang still using the same old crook tactic ar? like this vote PH what for?
22/02/2019 3:56 PM
Ehome009 Posted by YF24 > Feb 21, 2019 06:53 PM | Report Abuse

open drop but will bound back after awhile closing up 10sen 1.10 : )


YF24 was so correct in his yesterday's prediction
22/02/2019 3:57 PM
apolloang we vote for new misa not the old crook thinking otak kolot
22/02/2019 4:01 PM
amet2017 ok2 can go those badmouth yesterday can search for new counter to badmouth...kikiki
22/02/2019 4:05 PM
xuxu dramatic!
22/02/2019 4:31 PM
apolloang cheat the ikan bilis…..tipu post big losses but push up
22/02/2019 4:37 PM
YF24 Thanks for hsseb give me a huge profit in a day : )
22/02/2019 6:05 PM
22/02/2019 6:22 PM
Tan Issac funny stock,huge losses but still can up
22/02/2019 6:55 PM
22/02/2019 9:38 PM
DreamCommander Future prospects more important
22/02/2019 9:39 PM
lai81533 Trending GOod
22/02/2019 10:32 PM
23/02/2019 1:25 AM
5354_ Why fly even so much loss? Boss give corruption to bankers/Bursa?
23/02/2019 9:32 AM
amet2017 The word is impairment..read carefully the QR report.
23/02/2019 10:41 AM
cytew written of some goodwill , is a very good move, it will improve it's ROE
23/02/2019 11:17 AM
Dickyyou RM 119.529 million loss, revenue, NTA drop why good?
https://klse.i3investor.com/servlets/stk/fin/0185.jsp
23/02/2019 11:23 AM
lai81533 Good stocks. Laugh later
27/02/2019 10:58 AM
lai81533 strong big players good
27/02/2019 10:16 PM
lai81533 Strong. Go hsseb warrant a
01/03/2019 5:41 AM
lai81533 strong trend
07/03/2019 9:03 PM
YF24 yes next week limit up : )
08/03/2019 6:22 PM
Pak Abu Rm2 tomolo!!!
11/03/2019 4:36 PM
Pak Abu heheheheeee...
11/03/2019 4:36 PM
YF24 if ECRL on this courter will boom boom boom x3 TP2 within a month
11/03/2019 4:36 PM
Pak Abu ECRL???
11/03/2019 4:38 PM
kelvin Post removed. Why?
11/03/2019 4:39 PM
Pak Abu Econ n GBG will also up one
11/03/2019 4:46 PM
YF24 1.15-1.18
11/03/2019 11:18 PM
Pak Abu ECRL ??
12/03/2019 12:01 PM
Pak Abu Limit UP!!!!
12/03/2019 2:46 PM
YF24 haha chun chun touch 1.18 : )
12/03/2019 6:34 PM
Sharulf Lai,why laugh later ,any supporting reason? Thanks
13/03/2019 9:21 AM
commonsense Excluding the large impairment on goodwill and impairment on receivables, HSSEB 4Q18 profit would have actually recorded a small profit of less than RM1mil translating to a very depressing core profit margins of only 2.1% vs the FY17 average profit margins of 10.3%.

This just shows how depressing is the current operating environment for the construction industry. Most construction companies are now chasing the same projects given that much of the large infrastructure projects that had helped improve the construction industries margins are now being reviewed, scale down, cancelled and delayed by the federal government. The intense competition has forced some companies to undercut others when tendering for projects. In most cases, the proposal made by these companies will barely result in any profit. Most of them are betting on variables orders to help push for profit later at the end of the project/ contract. Basically, they are betting to have a round of negotiation with their clients later hoping for the clients to agree on paying the additional variation orders (this was what happen in the O&G industry in FY15 and FY16).

Investors need to take note that a contract win does not necessarily translate to profit. The worst case is actually more probable with companies that submitted a too low offer having the risk of cost overruns (and in most cases they also face LAD penalties due to delay in delivering projects).
For HSS Engineering, investors need to take note that even if some of the big projects like ECRL are put back to work, it would be at a lower cost which will be at the expense of contractors like HSSEB.

With this in mind (and couple with the challenging construction environment), investors need to be prepared for HSSEB to deliver margins that are similar to 4Q18 of single low digit. Assuming the company managed to deliver a profit of RM10mil in FY19, at the current share price, the company would be valued at a very lofty valuation of 53x PE. Let say profit managed to improved to RM20mil (which is higher than FY17 and FY18 core profit), the company would still be valued at 26.5x PE. Very high given that the average PE for construction now is less than 10x.

If you are looking to hedge your portfolio outside of HSSEB (due to its weak earnings outlook and relatively high valuation), I would recommend you to look at MBMR. (https://klse.i3investor.com/servlets/stk/pt/5983.jsp)

MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.6x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV.

FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well).

MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.5x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x.

Good luck.
15/03/2019 11:17 AM
YF24 it's time to jump in again : )
19/03/2019 5:59 PM
michaelwong commonsense l still agree with your sensible writes up , but under PH government more construction infrastructure is going to take place and construction and steel stocks would subsequently benefitted from the theme play even with cost review and reductions .
20/03/2019 12:50 AM
lai81533 took profit HSSEB Wa
20/03/2019 5:14 PM
YF24 Strong closing price tomorrow 1.20 and above : )
20/03/2019 5:46 PM
ZhugeNemo time to ride this counter
30/03/2019 11:37 AM
Sumalia Waiting for the next wave.. hehehe... target1.5
02/04/2019 12:56 PM
klkk In today's headline Sin Chew @7/4/19, Msia & China hv confirmed going ahead with ECRL project.
07/04/2019 10:47 AM
ZhugeNemo facing some resistance at 1.290
11/04/2019 6:39 AM
klkk https://www.sinchew.com.my/pad/con/content_2036865.html
11/04/2019 6:43 PM
klkk ECRL signing tomorrow at Beijing.
11/04/2019 6:44 PM
Tim2812 But nw already highway down.
12/04/2019 4:50 PM
Tim2812 Lol Boombastic....Mr Lobak Lobak hmm....
12/04/2019 5:12 PM
YF24 picha booom
12/04/2019 6:53 PM
Ravindran Raja Rathanam Worth to keep or shall we dispose?
12/04/2019 7:21 PM
YF24 Hard to say , depend on u is short term trader or long term but i think in mid term the price won't go so high
12/04/2019 9:00 PM
Ravindran Raja Rathanam https://www.thestar.com.my/business/business-news/2019/04/05/cimb-research-sees-rm77b-capex-for-water-infra/

HSSEB should benifit frm this mega capex
12/04/2019 9:05 PM


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