KLSE: HSSEB (0185)       HSS ENGINEERS BHD MAIN : Industrial Products
Last Price Today's Change   Day's Range   Trading Volume
1.18   0.00 (0.00%)  0.00 - 0.00  0
Analyze this stock with MQ Trader system


Market Cap: 585 Million
NOSH: 496 Million
Avg Volume (4 weeks):529,794
4 Weeks Range:0.99 - 1.18
4 Weeks Price Volatility (%):
52 Weeks Range:0.525 - 1.29
52 Weeks Price Volatility (%):
Average Price Target: 1.20
Price Target Upside/Downside: +0.02
Stamp duty exempted for year 2019

Financial Highlight

Latest Quarter | Ann. Date 31-Mar-2019 [#1]  |  15-May-2019
Next QR | Est. Ann. Date: 30-Jun-2019  |  15-Aug-2019
T4Q P/E | EY: -5.67  |  -17.63%
T4Q DY | Payout %: 0.00%  |  - %
T4Q NAPS | P/NAPS: 0.43  |  2.74
T4Q NP Margin | ROE: -53.66%  |  -48.37%


Date Subject
21-Jun-2019 Mplus Market Pulse - 21 Jun 2019
21-Jun-2019 Daily Market Update - 21 Jun 2019 (HSSEB, CRESBLD)
20-Jun-2019 进军再生能源·HSS续扩东盟市场
14-Jun-2019 M+ Online Technical Focus - 14 Jun 2019
14-Jun-2019 Daily Market Update - 14 Jun 2019 (ADVCON, HSSEB)
23-May-2019 Malaysia’s 1Q19 GDP Highlights
17-May-2019 Trading Stocks - HSS Engineers
16-May-2019 HSS Engineers - Slow Recovery
15-May-2019 M+ Online Technical Focus - 15 May 2019
15-May-2019 HSS Engineers - Infrastructure and Water Projects Beneficiary
15-May-2019 Daily Market Update - 15 May 2019 (EKOVEST, HSSEB)
13-May-2019 PublicInvest Research Headlines - 13 May 2019
04-May-2019 HSS重获东铁合约·价值缩水
19-Apr-2019 HSS工程迈向RM1.14/敏源
19-Apr-2019 Daily Technical Highlights – (HSSEB, SCOMNET)
18-Apr-2019 PublicInvest Research Headlines - 18 Apr 2019
16-Apr-2019 Construction - ECRL a Game Changer?
15-Apr-2019 Construction - East Coast Rail Link Revived
15-Apr-2019 Construction - The Worst Is Over
15-Apr-2019 ECRL to Resume With Reduced Cost!

Business Background

HSS Engineers Bhd through its subsidiaries is engaged in providing engineering and project management services including engineering design, project management, construction supervision and building information modeling services.
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  3 people like this.
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?
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
lextcs buy buy buy
25/04/2019 4:41 PM
Sharulf Why buy? Any reason
25/04/2019 9:34 PM
Santaitrader Must buy
03/05/2019 5:59 PM
probability HSS Engineers says ECRL contract is back on track

03/05/2019 11:24 PM
DreamCommander Positive development
04/05/2019 3:13 AM
DonyFernandes Up up up
05/05/2019 9:56 AM
InvestsucessTrader Hss was instructed to starts work on the ECRL immediately by CCCC the main contractor, EConpile will also has to get ready,
05/05/2019 4:11 PM
Red Herring HSS may need to offer special below mkt price placement Putrajaya 'cronies', then only the price will sky rocket....
06/05/2019 12:28 PM
Haman https://www.klsescreener.com/v2/announcements/view/29050644
10/05/2019 6:55 PM
Haman https://www.klsescreener.com/v2/announcements/view/29050644
10/05/2019 6:55 PM
TunDiam Share below RM1
13/05/2019 4:20 PM
Goh Kim Hock Despite all the hoo-ha, this company in fact is quite disappointing. Overvalued.
15/05/2019 7:25 PM
Undi_PAS After 1 year PH proven no hope just like BN. Pas rule in GE15 only hope for M'sians.
16/05/2019 12:49 PM
Yu Jin what a joke.. like above comment.
16/05/2019 6:13 PM



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