New Risk • Jun 01
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.1% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (66% accrual ratio). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (RM206.8m market cap, or US$52.1m). Reported Earnings • May 20
First quarter 2026 earnings released: EPS: RM0.006 (vs RM0.007 in 1Q 2025) First quarter 2026 results: EPS: RM0.006 (down from RM0.007 in 1Q 2025). Revenue: RM26.2m (down 17% from 1Q 2025). Net income: RM2.56m (down 11% from 1Q 2025). Profit margin: 9.8% (in line with 1Q 2025). Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Construction industry in Malaysia. Announcement • Apr 29
HE Group Berhad, Annual General Meeting, Jun 19, 2026 HE Group Berhad, Annual General Meeting, Jun 19, 2026, at 10:00 Singapore Standard Time. Location: greens iii sports wing, tropicana golf & country resort, jalan kelab tropicana, 47410 petaling jaya, selangor darul ehsan, Malaysia Upcoming Dividend • Mar 24
Upcoming dividend of RM0.01 per share Eligible shareholders must have bought the stock before 31 March 2026. Payment date: 14 April 2026. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Malaysian dividend payers (5.5%). Lower than average of industry peers (3.0%). Major Estimate Revision • Mar 05
Consensus revenue estimates fall by 14% The consensus outlook for revenues in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from RM178.4m to RM152.5m. EPS estimate fell from RM0.032 to RM0.031 per share. Net income forecast to grow 22% next year vs 22% growth forecast for Construction industry in Malaysia. Consensus price target down from RM0.47 to RM0.46. Share price fell 7.7% to RM0.30 over the past week. Reported Earnings • Feb 28
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: RM0.025 (down from RM0.031 in FY 2024). Revenue: RM123.3m (down 40% from FY 2024). Net income: RM11.0m (down 19% from FY 2024). Profit margin: 8.9% (up from 6.6% in FY 2024). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 3.5%. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Construction industry in Malaysia. Buy Or Sell Opportunity • Feb 05
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to RM0.31. The fair value is estimated to be RM0.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.8% over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 52% in 2 years. Earnings are forecast to grow by 32% in the next 2 years. Buy Or Sell Opportunity • Dec 12
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 23% to RM0.32. The fair value is estimated to be RM0.40, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.8% over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 52% in 2 years. Earnings are forecast to grow by 32% in the next 2 years. Reported Earnings • Nov 18
Third quarter 2025 earnings released: EPS: RM0.008 (vs RM0.011 in 3Q 2024) Third quarter 2025 results: EPS: RM0.008 (down from RM0.011 in 3Q 2024). Revenue: RM32.3m (down 45% from 3Q 2024). Net income: RM3.44m (down 26% from 3Q 2024). Profit margin: 11% (up from 7.8% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Construction industry in Malaysia. Buy Or Sell Opportunity • Oct 14
Now 22% undervalued Over the last 90 days, the stock has risen 11% to RM0.41. The fair value is estimated to be RM0.52, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 26% over the last year. Earnings per share has grown by 2.7%. Revenue is forecast to grow by 22% in 2 years. Earnings are forecast to grow by 14% in the next 2 years. Reported Earnings • Aug 19
Second quarter 2025 earnings released: EPS: RM0.007 (vs RM0.011 in 2Q 2024) Second quarter 2025 results: EPS: RM0.007 (down from RM0.011 in 2Q 2024). Revenue: RM32.0m (down 46% from 2Q 2024). Net income: RM3.16m (down 32% from 2Q 2024). Profit margin: 9.9% (up from 7.8% in 2Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Construction industry in Malaysia. Reported Earnings • May 21
First quarter 2025 earnings released: EPS: RM0.007 (vs RM0.008 in 1Q 2024) First quarter 2025 results: EPS: RM0.007. Revenue: RM31.5m (down 28% from 1Q 2024). Net income: RM2.89m (up 8.4% from 1Q 2024). Profit margin: 9.2% (up from 6.0% in 1Q 2024). The increase in margin was driven by lower expenses. Declared Dividend • May 01
Dividend increased to RM0.0045 Dividend of RM0.0045 is 13% higher than last year. Ex-date: 7th July 2025 Payment date: 22nd July 2025 Dividend yield will be 1.8%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is well covered by both earnings (13% earnings payout ratio) and cash flows (12% cash payout ratio). The company is yet to establish a track record of dividend growth or stability as it hasn't paid a regular dividend for at least 2 years. The company's earnings per share (EPS) would need to decline by 86% to shift the payout ratio to a potentially unsustainable range, which is more than the 55% EPS decline seen over the last 5 years. Announcement • Apr 29
HE Group Berhad, Annual General Meeting, Jun 17, 2025 HE Group Berhad, Annual General Meeting, Jun 17, 2025, at 10:00 Singapore Standard Time. Location: greens iii sports wing, tropicana golf & country resort, jalan kelab tropicana, 47410 petaling jaya, selangor darul ehsan, Malaysia New Risk • Mar 20
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Malaysian stocks, typically moving 7.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.3% average weekly change). Market cap is less than US$100m (RM149.6m market cap, or US$33.8m). Reported Earnings • Feb 18
Full year 2024 earnings released: EPS: RM0.031 (vs RM0.031 in FY 2023) Full year 2024 results: EPS: RM0.031 (in line with FY 2023). Revenue: RM206.9m (up 1.3% from FY 2023). Net income: RM13.7m (up 25% from FY 2023). Profit margin: 6.6% (up from 5.4% in FY 2023). Reported Earnings • Nov 19
Third quarter 2024 earnings released: EPS: RM0.011 (vs RM0.008 in 3Q 2023) Third quarter 2024 results: EPS: RM0.011 (up from RM0.008 in 3Q 2023). Revenue: RM58.9m (up 34% from 3Q 2023). Net income: RM4.62m (up 74% from 3Q 2023). Profit margin: 7.8% (up from 6.0% in 3Q 2023). The increase in margin was driven by higher revenue. New Risk • Nov 16
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported December 2023 fiscal period end). Market cap is less than US$100m (RM237.6m market cap, or US$53.1m). Announcement • Sep 05
HE Group Berhad Appoints Tang Kok Wai as Executive Director HE Group Berhad announced the appointment of MR TANG KOK WAI as Executive Director. Age 47, Date of change 02 September 2024. Qualifications Degree Electrical & Electronic Engineering Universiti Teknologi Malaysia, Diploma Electrical Engineering (Power Electronics and Control) Port Dickson Polytechnic. Working experience and occupation Mr. Tang Kok Wai began his career in 1997 as a Quality Technician at Siemens Components (Advanced Technology) Sdn. Bhd., shortly after obtaining his Certificate in Electrical Engineering (Power). After leaving Siemens Components (Advanced Technology) Sdn. Bhd. in 1997 to further his studies, he completed a Diploma in Electrical Engineering (Power Electronics and Control) in 1998. He then joined Techsu Steel Corporation Sdn. Bhd. in 1999 as a Technician, focusing on cold roll machines, before leaving in 2000 to pursue a Bachelor Degree in Electrical & Electronic Engineering, which he obtained from Universiti Teknologi Malaysia in 2004. Following graduation, Mr. Tang worked at Hexatech Sdn. Bhd. (now Galaxy Quantum Vision Sdn. Bhd.) as a Project Engineer, and was promoted to Assistant Manager in 2005. He moved to Hexatech Building Services Sdn. Bhd. (now Helios Energy International Sdn. Bhd.) in 2007, initially as an Assistant Manager and later as Project Manager in 2008. In 2012, he joined Hexatech Energy Consolidated Sdn. Bhd. as a Project Director but returned to Hexatech Building Services Sdn. Bhd. as a director later that year. He rejoined Hexatech Energy Consolidated Sdn. Bhd. in 2017, was seconded to Hexatech Engineering Sdn. Bhd. in 2021, and officially joined Hexatech Engineering Sdn. Bhd. as a Project Director in 2022. As of 2023, he is the Project and Technical Director of the Group, overseeing engineering and technical aspects of its projects. Announcement • May 01
HE Group Berhad, Annual General Meeting, Jun 21, 2024 HE Group Berhad, Annual General Meeting, Jun 21, 2024, at 15:00 Singapore Standard Time. Location: Tricor Business Centre, Gemilang Room, Unit 29-01, Level 29, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, Wilayah Persekutuan Kuala Lumpur Malaysia Agenda: To receive the Audited Financial Statements for the financial year ended 31 December 2023 together with the Reports of the Directors and Auditors thereon; To approve the payment of a Final Dividend of 0.40 sen per ordinary share for the financial year ended 31 December 2023; To approve the payment of Directors' fees and/or benefits of up to RM300,000 for the period commencing from the date of listing on 30 January 2024 until the next Annual General Meeting of the Company; To re-elect Datuk Christopher Wan Soo Kee as a Director of the Company; and to discuss other matters. Reported Earnings • Feb 24
Full year 2023 earnings released: EPS: RM0.031 (vs RM6.17 in FY 2022) Full year 2023 results: EPS: RM0.031. Revenue: RM204.4m (up 90% from FY 2022). Net income: RM10.9m (up 77% from FY 2022). Profit margin: 5.3% (down from 5.7% in FY 2022). The decrease in margin was driven by higher expenses. Announcement • Feb 23
HE Group Berhad Proposes Final Dividend for the Financial Year Ended 31 December 2023 HE Group Berhad announced that the Board of Directors has recommended a Final Dividend of 0.40 sen per ordinary share in respect of the financial year ended 31 December 2023. The proposed dividend is subject to the approval of the shareholders of the Company at the forthcoming Annual General Meeting. Board Change • Jan 30
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. No experienced directors. No highly experienced directors. Independent Non-Executive Director Christine Toh is the most experienced director on the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors.