Public IB Research values HSS Engineers at 52 sen

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KUALA LUMPUR (July 21):  Public IB Research has valued Ace Market-bound HSS Engineers Bhd at 52 sen.

The engineering and project management services provider with 28 years’ experience, is slated for listing on Ace Market on August 10.

In a note today, the research house said HSS Engineers said the group is raising RM31.9 million from the issuance of 63.8 million new shares.

“Given the backing of a strong and experienced management team, we believe the group is able to replenish its orderbook with the upcoming infrastructure projects such as Pan Borneo Highway, KL-Singapore high speed rail, Penang Transport Master Plan and Government’s affordable housing projects.

“Our earnings estimates are largely underpinned by its strong orderbook which stands at RM377.6 million over the next five years.

“Our fair value for HSS Engineers is 52 sen, based on 12.5x PE multiple on FY17F EPS of 4.2 sen,” it said.