KUALA LUMPUR: HSS Engineers Bhd’s growth trajectory remains intact and is expected to be key beneficiary as the Masters Builders Association Malaysia is projecting RM180 billion worth of construction jobs to be awarded this year, said Rakuten Trade.
The research house said these include major government infrastructure jobs such as Pan Borneo Highway, East Coast Rail Line, KL-Singapore High Speed Rail, Kuching light rapid transit and Labuan-Menumbok Bridge link.
HSS has just secured a RM289.9 million contract from Mass Rapid Transit Corporation (MRT Corp) as the independent consulting engineer (ICE) for Klang Valley’s MRT Line 3 – its largest contract secured to date.
HSS was also the ICE for previous MRT Line 1 and MRT Line 2.
With this, its orderbook is at a record high of RM962.5 million providing earnings visibility for the next five years.
Rakuten said HSS still has a balance of unutilised initial public offering proceeds of RM24 million with an extended timeline on the utilisation and re-allocated to expand its existing business segments and develop facility management which provides recurring long-term business.
Rakuten has recommended a “buy” call on HSS with a target price of RM1.90.