KUALA LUMPUR: HSS Engineers Bhd (HEB) says its order book has increased to an all-time high of RM2.1 billion in the second quarter ended June 30 2024 (2Q24).
This reflected the company's successful expansion and diversified project portfolio across domestic and international markets, it added.
"New contracts secured year-to-date, valued at RM850 million, have contributed to this record order book.
Notably, the landmark Baghdad Metro project in Iraq, secured in June 2024, represents a key addition, with the group providing project management consultancy (PMC) and supervision services for this project through a joint venture," it said in its interim results announcement today.
HEB said the robust order book also included ongoing projects such as PMC for Phase 1A of the Pan Borneo Highway in Sabah and lead consultancy for the Subang Airport redevelopment master plan, along with recent wins in Malaysia and Cambodia.
The diversified order book, spanning multiple sectors and geographies, will be progressively recognised until 2032, ensuring sustained revenue growth for HEB.
HEB said its strategic expansion into international markets is progressing well, with the new projects in Iraq and Cambodia complementing ongoing projects in Indonesia, the Philippines, and Bangladesh.
This will support its target of deriving 25 per cent of revenue from overseas ventures by 2027.
The company also remains confident in the Malaysian market, anticipating increased infrastructure spending and subsequent contract awards in the second half of 2024.
Its executive vice chairman Tan Sri Ir. Kuna Sittampalam said it had made substantial international gains this year, securing its largest contract win to date with the Baghdad Metro project in Iraq, on top of the Phnom Penh-Bavet Expressway project in Cambodia.
Domestically, it secured notable projects, such as the PMC contract for subsequent phases of the Yellowwood data centre in Johor and the engineering design and supervision contract for water systems upgrade in Pahang.
HEB posted a revenue of RM43.8 million and net profit of RM2.8 million in the second quarter ended June 30 2024. This was a drop of 10.3 per cent and 46.5 per cent respectively compared to the previous corresponding quarter.
The performance was primarily due to lower recognition from the Klang Valley Mass Rapid Transit's PMC contract in line with the project's progress.
HEB said it maintained a healthy tender book of RM483 million.