[Click eStock] "KIB Plug Energy Expands Business from Heat Exchangers to Hydrogen Energy"

Yuhwa Securities analyzed on the 3rd that KIB Plug Energy's expansion into the high-growth hydrogen energy business, based on its stable heat exchanger business, is positive.

KIB Plug Energy is a chemical equipment manufacturing company specializing in heat exchangers, established in 1981. Heat exchangers are devices that transfer heat from one substance to another and are used in various industries.

Researcher Yoo Seung-jun of Yuhwa Securities stated, "The company's heat exchangers hold a high market share and are mainly used in oil refining and petrochemical plants," adding, "As much as 99% of total sales in the first half of the year were exports, indicating that most of the sales are export-focused."

He continued, "Thanks to external factors such as high oil prices and high exchange rates, the company recorded favorable performance in the first half of this year," and "With the resumption of oil field and refinery-related projects in the Middle East region, the growth potential of the heat exchanger market is expected to be maintained in the mid to short term."

Meanwhile, KIB Plug Energy is recently restructuring its business around hydrogen energy. In September, it entered the hydrogen vehicle business by acquiring a 50% stake in Beomhan Motors, a company specializing in commercial electric and hydrogen vehicles.

Researcher Yoo said, "KIB Plug Energy is progressing with a goal to sell 300 hydrogen buses in 2024," and "In addition, it plans to expand its power generation business through the operation of hydrogen fuel cell power plants."

He also added, "Based on heat exchanger technology, the company is planning hydrogen-related plant businesses such as ammonia storage and transportation," and "We view positively the expansion from a stable heat exchanger business to a high-growth hydrogen energy business."

This content was produced with the assistance of AI translation services.