The manifesto of the present federal government identifies infrastructure development as the key driver of economic growth and has promised to increase petroleum royalties to the East Malaysian states thereby enabling a greater allocation of resources. These resources can be channeled into better infrastructure including clean water and clean energy to urban and rural areas, roads and bridges, schools and health centres – all of which offer opportunities for the construction industry in Sarawak, particularly as contracts are to go to locals. With regard to the outlook for the rest of the year, Dato Paul Yu, said he anticipated the uptick in revenue and improvement in margins to continue with the increase in construction activities.
Dolly chai2 is right. He got read the Buku Harapan. According to pakatan Harapan they do deliver their promises to rakyat to fullfill their janji. One of the janji they promise is they will continue pan borneo highway projects to take care of Borneo people.
the latest IB report is really contradicting. Says good and no problem but cut the target price. Ha ha, aiming to collect cheap? sound fishy.....especially if you notice bosses are supporting the price in recent months and weeks.
mike90... yes.. still very much valid... they have 3.1billion worth of contract on hand, with some 2.5billions oustanding (unbilled)...
that means they have work that at least will sustain them for 4-5 years assuming their yearly revenue is around 500-600million.
And this is the highest ROE construction company in Bursa. Net cash company (cash 139.8 mil, total LT + ST debt only 12+36mil...)
And this is what their MD said:
“We have recorded profit every reporting period since our listing on the exchange in 1996 and also recorded sound returns to our loyal investors each year,” said Dato Paul Yu.
Current Year Prospects With a record order book of RM3.1 billion of which some RM2.5 billion is unbilled, the Group continues to be busy on work execution. There has been an increase in the construction activities which has translated into higher revenue since the Fourth Quarter 2017. Revenue growth has been registered in both its construction and property development sector in the second quarter of 2018 and such trend is expected to continue. Overall profit margin has improved compared to that of 2017. The Group remains competitive in our tendering and project procurement will continue to be undertaken in line with our prudent project management strategies, taking due consideration of the capacity and capabilities of the Group vis-a-vis the rising needs for developments in the State. HSL foresees the property development segment, with a variety of products on offer, will make a greater impact on the business of HSL Group in 2018 and beyond.
hor seh liao... the only doubt that was raised previously has now been resolved... Government just mentioned that the Pan Borneo project will not be cancelled and will continue... Great news for HSL indeed...
and i always think that no political party will dare to touch Sabah & Sarawak projects.. they need their votes so much (that these votes are very critical to decide who win the federal government...
and HSL is one of the leading marine & construction companies in Sarawak...
Last time under BN government, most Borneo project were favor to Taib company only. Hope now under PH government, those Borneo projects will be assigned to those real competitive company such as HSL.
With a record order book of RM3 billion with some RM2.4 billion unbilled, the Group will be busy on work execution. There has been an increase in the construction activities which has translated into higher revenue since the Fourth Quarter 2017. Revenue growth has been registered in both the construction and property development sector in the third quarter of 2018 compared to the second quarter and such trend is expected to continue with improved profits. The State Government of Sarawak recently rolled out several mega sized projects such as the Coastal Road and Trunk Road Project as well as water works projects and these contracts are mostly in pre-qualification or tendering stage. Project procurement is undertaken in line with our prudent project management strategies, taking due consideration of the capacity, capabilities and competitive advantages of the Group. HSL foresees the property development segment, with a variety of products on offer, will make a greater impact on the business of HSL Group in 2018 and beyond.
finally found some info about the impact of mega project costs-cutting... as expected, HSL is not affected by the costs cutting activities:
According to the Ministry of Works, overall progress for the PBS project advanced to 35% as at Oct 2018, from 30% in June. A final cost reduction of MYR660m (4% of the original MYR16.5bn) was also determined, and will come from lower project development partner (PDP) fees, leaving the value of construction packages unchanged. This, in our view, lifts the risk of a reduction in HSL’s PBS contract value.
Better abandoned this ship, even though it's share price got someone supporting it. But due to its earning getting shrinking, even in future might get projects award, but according to the share price now oledy over value so no worth to hold it. Just sell, otherwise could be another trap for few years.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Dolly_Chai2
971 posts
Posted by Dolly_Chai2 > 2018-05-30 14:45 | Report Abuse
The manifesto of the present federal government identifies infrastructure development as the key driver
of economic growth and has promised to increase petroleum royalties to the East Malaysian states
thereby enabling a greater allocation of resources.
These resources can be channeled into better infrastructure including clean water and clean energy to
urban and rural areas, roads and bridges, schools and health centres – all of which offer opportunities for
the construction industry in Sarawak, particularly as contracts are to go to locals.
With regard to the outlook for the rest of the year, Dato Paul Yu, said he anticipated the uptick in revenue
and improvement in margins to continue with the increase in construction activities.