[%gJZx%] 
Research by CGS
Add – TP of MYR 1.48

“High-margin foreign win to compensate for delayed MRT 3 PMC” 

HSS Engineers (HSS) and its JV partner, Consultant HSS, LLC, on 1 July entered into a contract with the Mayoralty of Baghdad for the provision of Project Management Consultancy (PMC) and Construction Supervision Services (CSS) for a metro project in Baghdad. The total estimated fees are RM1.49bn, of which HSS’s 50% share is worth RM745m. Of this amount, RM249m (0.6% of construction cost of RM83bn) relates to the PMC work that commences in Jul 24 and ends in 3Q25F. Thereafter, the CSS contract worth RM497m (1.2% of construction cost of RM83bn) will commence in 3Q25F and end in May 29F. The JV will receive an advance payment of RM74.5m, 15% of the PMC work.

Analyst(s):
CHONG Tjen-San, CFA
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$KLSE-HSSEB 
Research by CGS
Add – TP of MYR 1.48

“High-margin foreign win to compensate for delayed MRT 3 PMC” 

HSS Engineers (HSS) and its JV partner, Consultant HSS, LLC, on 1 July entered into a contract with the Mayoralty of Baghdad for the provision of Project Management Consultancy (PMC) and Construction Supervision Services (CSS) for a metro project in Baghdad. The total estimated fees are RM1.49bn, of which HSS’s 50% share is worth RM745m. Of this amount, RM249m (0.6% of construction cost of RM83bn) relates to the PMC work that commences in Jul 24 and ends in 3Q25F. Thereafter, the CSS contract worth RM497m (1.2% of construction cost of RM83bn) will commence in 3Q25F and end in May 29F. The JV will receive an advance payment of RM74.5m, 15% of the PMC work.

Analyst(s):
CHONG Tjen-San, CFA
tjen-san.chong@cgsi.com