HEB’s FY17 net profit increases to RM15 million
KUALA LUMPUR: HSS Engineers Bhd (HEB) recorded a 7.1 per cent rise in net profit to RM15 million in the financial year ended December 31, 2017 (FY17) on 4.8 per cent increase in revenue to RM145.6 million, due to higher contribution from Project Management division.
As at December 31, 2017, HEB’s unbilled order book amounted to RM434.3 million, showing an increase from RM378.5 million as at December 31, 2016. The current order book comprises RM291.9 million for engineering services, RM136.2 million for project management consulting and RM6.2 million for building information modeling.
HEB’s ongoing works include the Independent Consulting Engineer role for Klang Valley Mass Rapid Transit Line 2 (KVMRT2), Preliminary and Detailed Design, as well as Construction Supervision for the stipulated ranges of the East Coast Rail Link, and the Reference Design Consultant (RDC05) for the KL-Singapore High Speed Rail. The order book is slated to last over the next two to five years.
In a statement, HEB executive vice chairman Tan Sri Ir Kuna Sittampalam said FY17 has been a momentous year for HEB.
“We achieved many milestones such as transferring our listing status from ACE Market to the Main Market, as well as securing RM176 million worth of new contracts, exceeding more than 70 per cent of our total wins for FY16.
“Our track record in rail and road transport sector augurs well for HEB to play a major role in the infrastructure boom, and places us en route to scale greater heights in the current year. To this end, we aim to increase our order book in line with our expected growth.
“In addition to that, our acquisition of SMHB Engineering Sdn Bhd (SMHB Engineering) is on track for completion in the first quarter of 2018, and cements our position to ride the strong growth in the water sector hereon.
“With a combined order book of approximately RM742.3 million once consolidated, HEB would be well positioned to take advantage of the infrastructure growth in the country, both in the transportation and the water sector.”
HEB Group had, on January 30, 2018, obtained shareholders’ approval for the acquisition of SMHB Engineering, alongside the corporate exercises to part finance the deal. The corporate exercises include rights issue together with bonus shares and warrants, as well as a private placement to selected investors.
Of total FY17 group topline, revenue from the project management segment increased 40.2 per cent to RM53.3 million in FY2017 from RM38.0 million a year ago on stronger billings from KVMRT2, Kwasa Damansara Township Development as well as rehabilitation and upgrading works on the railway line in East Coast sector.
HEB Group also announced that Ir Kuna Sittampalam, has been re-designated to executive vice chairman from executive director effective immediately. The new role requires him to assist the chairman in all matters under his purview, and act as chairman in the latter’s absence.
The new role requires him to review the strategic plans for the group, ensure the group’s strategies promote sustainability and growth, and provide leadership and oversight to the overall conduct of the business.