Posted by InvestorwithIQ > 2022-09-21 15:14 | Report Abuse

HSS Engineers (HSS MK)
BUY (maintain) Price Target: RM0.82
Up/Downside: +115.8% Previous Target (Rating): RM0.82 (BUY)
Multiple growth drivers
➢ We hosted HSS management for a meeting with 12 institutional investors
➢ The RM998m Project Management Consultant (PMC) secured contract for the
Klang Valley MRT Line 3 (MRT3) project provides good earnings visibility
➢ HSS is expanding its engineering services to other industries and pursuing
overseas expansion to diversify geographically. HSS remains a sectortop BUY
with an unchanged target price (TP) of RM0.82, based on a 2023E PER of 18x
MRT3 PMC contract provides long-term earnings visibility
HSS accepted the Letter of Appointment from MRT Corporation on 4 August 2022 to
provide PMC services for the MRT3 project with an estimated value of RM997.9m over
the expected duration of 11 years. We understand that the revenue will mostly be
recognised in the first 8 years for the engineering design and project management of the
civil works portion of the MRT3.
Geographical diversification and expansion of services
HSS’ remaining order book of RM1.5bn will provide earnings visibility over the coming 5-
8 years. New contract wins hit a new high of RM1.09bn YTD 2022. HSS is still targeting
another RM150-200m of contract wins in 2H22 with a tender book of RM400m currently.
Some ongoing bids/negotiations for new projects are the Bayan Lepas and Johor LRTs,
Sarawak Metro, Westport Phase 2, PJD Link Highway, KL-Karak Highway Widening,
Kuching Airport expansion, and flood mitigation, water and sewerage projects. HSS is
also expanding geographically by pursuing Asian projects in collaboration with Japanese
consultants and expanding its services to other industries such as the telecommunication
(5G network infrastructure) and digital technology (data centre) sectors.
Private placement and bonus issue of warrants
HSS proposed a private placement of new shares up to 20% of share capital and bonus
issue of 1 warrant for every 3 existing shares held on 17 August 2022. We gather that the
private placement is a contingency plan and the new equity issuance will only be required
if HSS needs working capital for its projects. Indications are working capital requirements
for its projects can be met with internally-generated funds and bank borrowings. Net
gearing is low at 0.1x as at end-2Q22. Hence, new equity funding from the proposed
private placement and exercise of warrants may not be required, in our opinion.
Remains a top sector BUY
The core 2023E PER of 8x is attractive considering its strong 2-year core EPS CAGR of
45% in 2023-24E. We maintain our BUY call with a 12-month TP of RM0.82, based on
target 2023E PER of 18x. Key risks are political uncertainties and slow roll-out of
infrastructure projects.

Posted by nelsonlim > 2022-09-27 16:30 | Report Abuse

ini hsseb also creeping up. after cuci semua

Posted by nelsonlim > 2022-10-06 16:35 | Report Abuse

hsseb rly cum. secretly to 43c

Posted by fruitcake > 2022-10-06 18:20 | Report Abuse

not enough oomph

Posted by manastha > 2022-10-06 23:32 | Report Abuse

slowly and steadily

Posted by steven rt > 2022-11-10 20:13 | Report Abuse

Any idea when 4Q results out?

Posted by steven rt > 2022-11-10 20:15 | Report Abuse

Good write ups, project wins but not moving, why?

Posted by henry888 > 2022-11-25 07:12 | Report Abuse

No operator kah, volume so low ??? Will sky rocket if Federal can increase development fund from 5% to10% as requested by Premier.

Posted by skwong8908 > 2023-03-27 14:28 | Report Abuse

Hope it will benefit from KL-SG project

Posted by Liposenze > 2023-03-29 11:40 | Report Abuse

Anthony loke follow pmx visit china

Posted by wallstreetrookieNEW > 2023-09-05 09:17 | Report Abuse

Is this the company connected to Petronas? I forgot

Posted by dmyap327 > 2023-09-14 15:02 | Report Abuse

https://www.sinchew.com.my/news/20230913/finance/4981731
PLEASE REFER TO THIS LINK GOT GOOD NEWS FOR HSSEB

Posted by drteh84 > 2023-09-14 15:57 | Report Abuse

YTL naik BANYAK dah... yang ini berpotensi RM1

Posted by UncleFollower > 2023-09-15 17:27 | Report Abuse

I have absolutely missed profiting from this counter. In hindsight it's such an obvious choice. Well done guys

Posted by troy88 > 2023-09-19 09:54 | Report Abuse

Underrated stock with good potential..

Posted by troy88 > 2023-10-12 15:25 | Report Abuse

Break out! Otw to TP 1.21

Posted by Goldberg > 2023-10-12 21:19 | Report Abuse

CGS-CIMB has named YTL Corp Bhd , Malayan Cement Bhd and HSS Engineers Bhd as the top beneficiaries from the HSR’s revival, according to a note on Wednesday (Sept 13).

Posted by Pgraduate123 > 2023-10-14 17:56 | Report Abuse

Any mention abt it on the budget???

Posted by mf > 2023-10-18 15:32 | Report Abuse

collect

Posted by ktrader > 2023-10-19 21:10 | Report Abuse

collected more today, huhu

Posted by tedoptimus > 2023-10-23 19:58 | Report Abuse

今日交易HSSEB（0185）！
https://youtu.be/R88AKl7ZgN8?si=I2RQfUOgq2FX6laL

Posted by ktrader > 2023-10-25 15:54 | Report Abuse

coming?

Posted by troy88 > 2023-10-31 10:22 | Report Abuse

CIMB TP 1.21 still intact

Posted by Goldberg > 2023-11-04 16:34 | Report Abuse

CIMB -Reiterate Add and TP of RM1.21

We reiterate Add on HSS with a DCF-derived TP of RM1.21 (WACC: 9.4%, TG: 4.5%). At our TP, HSS will trade at 16.6x FY24F P/E, which is still below mean post-Covid-19. Downside risks are slower rollout of projects and single project risk from MRT 3 PMC.

We maintain our view that, while officially its tenderbook is at RM415m (historically 50% success rate.

There is a potential RM1.9bn worth of engineering and project management services (EPMS) projects in the pipeline locally over the next two years .

Posted by troy88 > 2023-11-07 09:07 | Report Abuse

Funny not many are interested in this overlooked gem..

Posted by Goldberg > 2023-11-07 09:43 | Report Abuse

No worries, HSSEB is trending upwards - Day traders and short term gamblers are not interested in this gem. Praise the Lord.

Posted by mf > 2023-11-08 12:11 | Report Abuse

RHB Investment Research Reports
Real Estate - Johor: The Malaysia-Singapore Interchange

rhbinvest
Publish date: Tue, 31 Oct 2023, 09:47 AM
Maintain OVERWEIGHT. We are upbeat on the outcome of the recent meeting between Malaysia and Singapore. Both governments have committed to accelerate the progress of the Johor-Singapore Special Economic Zone (SEZ), with further updates/details regarding tax incentives and cross-border electricity trading expected to be announced in the coming months. The leaders strongly emphasised the aim to smoother trips for people and transportation of goods. Companies that can potentially benefit significantly include UEM Sunrise, Sunway and AME Elite Consortium.

Posted by Michael Kwok > 2023-11-24 13:29 | Report Abuse

Sell call
Hsseb rm 1
Tp 70 cents range or below
24/11/23 1.30pm

Posted by sten_still > 2024-01-04 11:08 | Report Abuse

Huge roadblock at 1.04 and 1.05

Posted by Pgraduate123 > 2024-01-06 12:25 | Report Abuse

This month will fly

Posted by Goldberg > 2024-01-12 17:20 | Report Abuse

HSS Engineers Bhd remains positive on its outlook for financial year 2024


Although the group did not provide any guidance on project wins for FY24 during its recent Malaysia Corporate Day, HSS expects 2024 to be a better year, according to CGS-CIMB Research.

It noted that in the first nine months of 2023, the group’s core net profit increased by 43% year-on-year, with project replenishment totalling RM300mil.

HSS has a tender book of RM442mil with historically a 50% success rate.

The research firm said the biggest setback for HSS was the further extension of the validity period for the Mass Rapid Transit 3 (MRT 3) civil packages.

“This is the fourth extension, with the period now ending in March 2024.

“Nevertheless, recent news from the Transport Minister that land acquisition will commence this year over a two-year timeline gave some assurance that awards could be imminent.

“HSS’ outstanding order book as at September 2023 was RM1.49bil, of which we estimate 60% to be its project management consultancy (PMC) contract for MRT 3,” said CGS-CIMB Research.

For its current PMC role in the MRT3 project, the research house added that it is still undergoing optioneering and land acquisition work and a strong pick-up in revenue recognition would be visible once the three large civil packages for MRT 3 are awarded.

“Once that happens, more engineers can be deployed and progress billings will pick up exponentially.”

However, the research house said the slack from MRT 3 delays could possibly be picked up by other projects, such as its lead design consultant role for Westports phase two, which is estimated to have a contract value of RM100mil to RM150mil.

It said the more immediate wins for the group could be from flood mitigation projects, the Penang Light Rapid Transit and Pan Borneo Sabah phase 1B.

A total of 33 high priority flood mitigation projects will be rolled out, costing about RM11.8bil under Budget 2024.

“Out of this, HSS has submitted engineering design bids for the smaller projects (worth RM500mil)

“For Pan Borneo Sabah phase 1B, the awards should happen soon. HSS was awarded a RM145mil PMC role for Pan Borneo Sabah phase 1A (15 packages) in April 2021.

“As phase 1B will comprise 19 packages worth RM15.7bil, we estimate the PMC role to be worth RM300mil,” added CGS-CIMB Research.

The company is currently working on overseas ventures in Japan to facilitate a private and public partnership project with the Japan Overseas Infrastructure Investment Corp for transport and urban development.

Posted by Lee Ying Yee > 2024-02-08 20:49 | Report Abuse

pp kill u ???

Posted by Harim99 > 2024-02-09 11:44 | Report Abuse

tak berapa jatuh selepas ia buat pp. Masa utk sapu? 😁

Posted by Harim99 > 2024-02-23 19:53 | Report Abuse

masuk sikit sebelum ia pecah RM1.10

Posted by Harim99 > 2024-03-21 23:17 | Report Abuse

bagus, dah pecah RM1.10 🤗

Posted by sten_still > 2024-04-09 10:34 | Report Abuse

Give up already this stock

Posted by icecube > 2024-04-11 21:20 | Report Abuse

what happened? was on strong uptrend but then suddenly reversed and crashed downward. some fund selling? project delayed? questions unanswered as there is no news or bursa announcement. but at the same time, substantial shareholders just sold 10 mln shares to institutional funds... hmm.

Posted by speakup > 2024-04-11 21:24 | Report Abuse

https://focusmalaysia.my/indians-will-teach-ph-dap-a-painful-lesson-in-kkb-by-election/

Posted by icecube > 2024-04-16 09:49 | Report Abuse

😲 still plunging.... 92 now. catching knife or buying opportunity?? what a dilemma

Posted by kritikos > 2024-05-17 23:15 | Report Abuse

HSS is finally back at 1.07.. what a ride over the last 1 mth. am hoping it will deliver good results this month. Strong results means up up and away …

Posted by stainlyho37 > 2024-06-07 09:50 | Report Abuse

watch out...construction heat till year end....s u 1..+++...

Posted by thesteward > 2024-07-10 10:07 | Report Abuse

Useless

Posted by UncleFollower > 2024-07-19 12:49 | Report Abuse

Here we go again, nice

Posted by troy88 > 2024-07-19 15:07 | Report Abuse

Wow, suddenly shoot up after roller coaster for months

Posted by LicherTS > 2024-07-19 18:27 | Report Abuse

Next week can rally up again

Posted by Michael Kwok > 2024-07-22 16:45 | Report Abuse

Buy call hsseb 1.29-1.31
If can maintain 1.25 support first 2 hours, 23/7/24 then consider
22/7/24 4.44pm

Posted by Ellyn20 > 2024-07-25 09:44 | Report Abuse

On my watchlist...

Posted by fensiang > 2024-08-19 12:55 | Report Abuse

Hsseb , when to annouce qr2 result

Posted by turbochart > 2 months ago | Report Abuse

China build too many HSR. Now almost bankrupt. Rakyat makan rumput

Posted by GoldenCoin23 > 1 week ago | Report Abuse

time to buy