HSSEB

HSSEB

Postby winston » Wed May 15, 2019 8:53 am

not vested

Trading Buy: HSSEB - 0185
(Last price: RM1.06, Potential upside +21.7%)

Company Profile
HSSEB (listed in Apr 2016) is principally involved in the provision of engineering and project management services including engineering design, construction supervision, project management, environmental services and building information modelling (BIM) services.

Trading Catalyst

We like HSSEB’s exposure to a wide array of domestic infrastructure segments, riding on the pump-priming projects in Malaysia and the ASEAN as major energizing force for growth that are impervious to heightened trade war tensions and decelerating global economy.

Valuation is undemanding at 17.5x FY20 P/E (22.4% below its average P/E of 22.5x since listing), supported by RM546m order book (sustainable for 2-3 years) and a strong 27% EPS CAGR from FY18-21.

Yesterday’s bullish engulfing candle provides an impetus for HSSEB to break above the flag resistance in the short term, opening the door for a retest of the 52W high of RM1.29.

Technical View
Resistance: RM1.11 / RM1.15 / RM1.29
Support: RM1.00 / RM0.975
Cut loss: RM0.960

Key Financial Stats
Trading at 17.5x FY20E P/E (22.4% below 22.5x since listing), supported by a strong 27% EPS CAGR from FY18-21.

Source: HLB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: HSSEB

Postby winston » Wed Aug 07, 2019 10:29 am

not vested

Technical Tracker - HLIB Retail Research
Trading Buy: HSSEB-0185
Values emerge after recent sell down
(Last price: RM0.930, Potential upside +20.4%)


Company Profile

HSSEB (listed in Apr 2016) is principally involved in the provision of engineering and project management services including engineering design (ED), construction supervision (CS), project management (PM), environmental services and builging information modeling (BIM) services.

In FY18, the ED, CS and PM contributed 35.3%, 34.9% and 24.2% to the group revenue, respectively whilst the remaining 5.6% came from BIM & others businesses.


Trading Catalyst

Ahead of 2Q19 results next week, HSSEB’s prices slid 21.8% from one month high of RM1.19 to RM0.93 yesterday, tracking external markets headwinds and concerns over slower progress billings due to project delays.

We like HSSEB’s exposure to a wide array of domestic infrastructure segments, riding on the potential mega projects revival in Malaysia and the ASEAN as major energising force for growth that are impervious to burgeoning trade war tensions.

We believe HSSEB will be the first to benefit given requirements to appoint engineering consultants to design and conduct feasibility studies on infrastructure projects before they are implemented.

Valuation is not expensive at 18.4x FY20 P/E (31% below its 2Y average 27x P/E), supported by RM558m order book (sustainable for minimum 2 years). Technically, the stock is ripe for an oversold rebound towards RM0.98-1.12 after a brief sideways consolidation.

Technical View
Resistance: RM0.980 / RM1.03 / RM1.12
Support: RM0.910 / RM0.900
Cut loss: RM0.870

Key Financial Stats
Trading at 18.4x FY20E (31% below its 2Y mean of 27x)

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: HSSEB

Postby winston » Thu Oct 12, 2023 5:12 pm

More visible contract flows in 2024F

Reiterate Add, as we lift FY24-FY25F EPS forecasts and TP to RM1.21.

Near-term tender book at RM415m but we see potential projects of RM1.9bn for engineering services and project management in the next 2 years.

We think sustainable P/E re-rating would depend on rising recurring income for its fourth vertical and overseas projects to diversify concentration risks.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... BD9096F325
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: HSSEB

Postby winston » Mon Oct 23, 2023 8:44 am

not vested

Bullish tone at recent meeting

We came away from a group meeting with management on 19 Oct feeling more positive as project visibility improves and awards are on the horizon.

From Budget 2024, flood mitigation, Penang LRT and Pan Borneo Sabah Phase 1B are likely wins, HSS believes.

In the private sector, a Westport win is imminent. Reiterate Add and DCF derived TP of RM1.21.
Reiterate Add and TP of RM1.21

We reiterate Add on HSS with a DCF-derived TP of RM1.21 (WACC: 9.4%, TG: 4.5%).
At our TP, HSS will trade at 16.6x FY24F P/E, which is still below mean post-Covid-19.
Downside risks are slower rollout of projects and single project risk from MRT 3 PMC.

We maintain our view that, while officially its tenderbook is at RM415m (historically 50%
success rate), there is a potential RM1.9bn worth of engineering and project
management services (EPMS) projects in the pipeline locally over the next two years
(Fig 1).


Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... C755B66464
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: HSSEB

Postby winston » Wed Jan 10, 2024 1:06 pm

Still quietly confident

At our 2024 Malaysia Corporate Day, HSS said it remained positive on its 2024 outlook and expects greater clarity on project flows in Mar/Apr.

MRT 3 delays are a setback but we believe Westports 2, flood mitigation and Pan Borneo Sabah Phase 1B projects will fill this gap.

Reiterate Add and TP of RM1.21.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 9145C7687B
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: HSSEB

Postby winston » Fri Jan 12, 2024 8:13 am

not vested

HSS expects clarity on project flows by March

In the first nine months of 2023, the group’s core net profit increased by 43% year-on-year, with project replenishment totalling RM300mil.

HSS has a tender book of RM442mil with historically a 50% success rate.

HSS’ outstanding order book as at September 2023 was RM1.49bil,


Source: The Star

https://www.thestar.com.my/business/bus ... s-by-march
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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