HSL - lrgest builder in Sabah & Sawarak

The largest builder in Sabah and Sarawak by market size expects to continue its growth trajectory over the medium term, given the number of sizeable infra jobs coming up in its home state of Sarawak.

With its niche in marine engineering, particularly land reclamation, it is seen as being a major beneficiary of the government’s Budget 2014 allocation for Sarawak.

The government allocated rm1.6 billion for the continued development of the five economic growth corridors which includes the Samalaju Industrial Park and a halal hub in the Sarawak Regional Corridor.

Its ongoing will come from three factors – issues of urbanization, providing better amenities to rural people and the SCORE.

It has a healthy balance sheet with zero gearing and decent dividends.

Datuk Paul Yu Chee is a substantial shareholder in the company. The EPF has a 9.8% stake.
It has a small but growing property development business, which accounted for 7% of its profit.

Its niche in marine engineering and there were few competitors with a Sarawak issued license that can bid for public jobs.

Its order book stood at rm2 billion of which rm1.2 billion is outstanding. Construction jobs formed the bulk of the order book, at rm1.85 billion.