Posted by ignasio > 2019-02-22 14:57 | Report Abuse

god stock , rip early morning panic seller

Posted by Ehome009 > 2019-02-22 14:57 | Report Abuse

What a come back despite heavy losses!

Posted by edmen > 2019-02-22 15:40 | Report Abuse

looks like somebody knew that the likelihood of the ECRL's fate is gonna be ON

Posted by amet2017 > 2019-02-22 15:41 | Report Abuse

I believe its written somewhere in the report. They are expecting the ecrl resumption

Posted by edmen > 2019-02-22 15:47 | Report Abuse

buy buy buy, resistance broken...

Posted by edmen > 2019-02-22 15:49 | Report Abuse

next week price is set to soar - another iwcity in the making....

Posted by Ehome009 > 2019-02-22 15:49 | Report Abuse

Edmen,I concur with your notions

Posted by Ehome009 > 2019-02-22 15:51 | Report Abuse

all negatives were removed, the only direction is up...

Posted by apolloang > 2019-02-22 15:56 | Report Abuse

still using the same old crook tactic ar? like this vote PH what for?

Posted by Ehome009 > 2019-02-22 15:57 | Report Abuse

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

Posted by apolloang > 2019-02-22 16:01 | Report Abuse

we vote for new misa not the old crook thinking otak kolot

Posted by amet2017 > 2019-02-22 16:05 | Report Abuse

ok2 can go those badmouth yesterday can search for new counter to badmouth...kikiki

Posted by xuxu > 2019-02-22 16:31 | Report Abuse

dramatic!

Posted by apolloang > 2019-02-22 16:37 | Report Abuse

cheat the ikan bilis…..tipu post big losses but push up

Posted by YF24 > 2019-02-22 18:05 | Report Abuse

Thanks for hsseb give me a huge profit in a day : )

Posted by PotentialGhost > 2019-02-22 18:22 | Report Abuse

Bravo

Posted by Tan Issac > 2019-02-22 18:55 | Report Abuse

funny stock,huge losses but still can up

Posted by DreamCommander > 2019-02-22 21:38 | Report Abuse

Wow

Posted by DreamCommander > 2019-02-22 21:39 | Report Abuse

Future prospects more important

Posted by lai81533 > 2019-02-22 22:32 | Report Abuse

Trending GOod

Posted by PotentialGhost > 2019-02-23 01:25 | Report Abuse

Bravo

Posted by 5354_ > 2019-02-23 09:32 | Report Abuse

Why fly even so much loss? Boss give corruption to bankers/Bursa?

Posted by amet2017 > 2019-02-23 10:41 | Report Abuse

The word is impairment..read carefully the QR report.

Posted by cytew > 2019-02-23 11:17 | Report Abuse

written of some goodwill , is a very good move, it will improve it's ROE

Posted by Dickyyou > 2019-02-23 11:23 | Report Abuse

RM 119.529 million loss, revenue, NTA drop why good?
https://klse.i3investor.com/servlets/stk/fin/0185.jsp

Posted by lai81533 > 2019-02-27 10:58 | Report Abuse

Good stocks. Laugh later

Posted by lai81533 > 2019-02-27 22:16 | Report Abuse

strong big players good

Posted by lai81533 > 2019-03-01 05:41 | Report Abuse

Strong. Go hsseb warrant a

Posted by lai81533 > 2019-03-07 21:03 | Report Abuse

strong trend

Posted by YF24 > 2019-03-08 18:22 | Report Abuse

yes next week limit up : )

Posted by Pak Abu > 2019-03-11 16:36 | Report Abuse

Rm2 tomolo!!!

Posted by Pak Abu > 2019-03-11 16:36 | Report Abuse

heheheheeee...

Posted by YF24 > 2019-03-11 16:36 | Report Abuse

if ECRL on this courter will boom boom boom x3 TP2 within a month

Posted by Pak Abu > 2019-03-11 16:38 | Report Abuse

ECRL???

Posted by ANALyst > 2019-03-11 16:39 |

Post removed.Why?

Posted by Pak Abu > 2019-03-11 16:46 | Report Abuse

Econ n GBG will also up one

Posted by YF24 > 2019-03-11 23:18 | Report Abuse

1.15-1.18

Posted by Pak Abu > 2019-03-12 12:01 | Report Abuse

ECRL ??

Posted by Pak Abu > 2019-03-12 14:46 | Report Abuse

Limit UP!!!!

Posted by YF24 > 2019-03-12 18:34 | Report Abuse

haha chun chun touch 1.18 : )

Posted by Sharulf > 2019-03-13 09:21 | Report Abuse

Lai,why laugh later ,any supporting reason? Thanks

Posted by commonsense > 2019-03-15 11:17 | Report Abuse

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.

Posted by YF24 > 2019-03-19 17:59 | Report Abuse

it's time to jump in again : )

Posted by michaelwong > 2019-03-20 00:50 | Report Abuse

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 .

Posted by lai81533 > 2019-03-20 17:14 | Report Abuse

took profit HSSEB Wa

Posted by YF24 > 2019-03-20 17:46 | Report Abuse

Strong closing price tomorrow 1.20 and above : )

Posted by ZhugeNemo > 2019-03-30 11:37 | Report Abuse

time to ride this counter

Posted by Sumalia > 2019-04-02 12:56 | Report Abuse

Waiting for the next wave.. hehehe... target1.5

Posted by klkk > 2019-04-07 10:47 | Report Abuse

In today's headline Sin Chew @7/4/19, Msia & China hv confirmed going ahead with ECRL project.

Posted by ZhugeNemo > 2019-04-11 06:39 | Report Abuse

facing some resistance at 1.290