HSS Engineers Bhd1 announced its third quarter net profit of RM7.2 million, which marked a 39.9% increase year-on-year (YoY) from RM5.2 million in the corresponding quarter last year, buoyed by the group's successful expansion strategy and diversified project portfolio across domestic and international markets, according to a press statement circulated by the group dated Nov 20.
The higher net profit was supported by the group's revenue that amounted to RM50.4 million in the same quarter, marking a 6.3% growth YoY from RM47.4 million.
Additionally, the group has a record-high order book valued at RM2.1 billion, and is tendering for RM483 million worth of projects.
HSS Engineers, with presence in Iraq, Cambodia, Indonesia, the Philippines, and Bangladesh, has set a target of generating 25% of total revenue from overseas venture by 2027.
Last month, the group's subsidiary HSS Engineers Sdn Bhd (HSSE), inked a Joint Venture and Shareholders' Agreement with leading asset management and infrastructure solutions provider Opus International (M) Berhad to provide engineering and technical services in Southeast Asia and the Middle East.
The group has also set up a Sarawak-based subsidiary, HSS Alliance (Sarawak) Sdn Bhd, to capitalise on the immense infrastructure opportunities generated by the state's rapidly growing economy. Recently, HSS Alliance secured its first contract, a road project in
Serian, and is eyeing other infrastructure projects in the state.
In the digital innovation sector, HEB Group is providing PMC and engineering design services for seven data centres in Selangor and Johor. The group is targeting more opportunities in this sector, capitalising on a surge in data centre investments on the back of supportive government policies and reliable energy infrastructure. Through its tech-focused subsidiary HSS ProPick Technologies Sdn Bhd, HSS Engineers is also offering a wide array of drone-driven solutions for use in the telecommunication, construction and plantation industries.
The project management consultancy segment was the leading contributor to revenue growth, which registered an increase of over 20% to RM25.1 million in the third quarter from RM20.9 million previously, driven mainly by revenue recognised from the Baghdad Metro project in Iraq, secured in June 2024.
The engineering design segment's third quarter revenue increased 3.6% YoY to RM9.7 million from RM9.4 million, mainly contributed by revenue from the Subang Airport redevelopment master plan.
For the nine-month period ended 30 September 2024, the group recorded total revenue of RM141.6 million and net profit of RM14.5 million, representing a slight decline of 0.4% YoY and 1.5% YoY, respectively.
With a combined experience of more than 80 years, HSS Engineers specialises in urban infrastructure, transportation planning, roads and highways, railways and metro systems, water resources and supply, waste management, building and structures, power generation and recently diversified into telecommunication and digital technology. Some of the notable large-scale projects handled by the group include MRT 1,2, & 3, Maju Expressway 2, West Coast Expressway and Sarawak Water Grid Study. ︎
