[Click eStock] "KIB Plug Energy, Expected to Achieve 130 Billion KRW in Heat Exchanger Orders... Anticipation for Hydrogen New Business"

Independent research firm Growth Research highlighted on the 7th that attention should be paid to KIB Plug Energy's restructuring of its hydrogen-centered business structure. No investment opinion or target price was provided.

KIB Plug Energy is a chemical equipment specialist company with 42 years of experience. Its main product is heat exchangers, which are mostly delivered to clients through a custom order production method. As of the first half of this year, it recorded sales of 65.4 billion KRW and an operating profit of 8.4 billion KRW.

Researcher Lee Jae-mo of Growth Research analyzed, "Orders are coming in from heat exchanger projects that were delayed during the COVID-19 period, making it possible to achieve total orders of 130 billion KRW by the end of the year," adding, "Based on this year's orders, 2024 performance is expected to achieve stable sales and operating profit."

Recently, KIB Plug Energy entered the hydrogen business and restructured its business into ▲ energy production ▲ energy commercial use ▲ energy equipment sectors. In September, it signed a business agreement with Korea Electric Power Technology, the High Technology Research Institute, and others for synthetic gas production and raw material supply. It is also accelerating its entry into the eco-friendly commercial vehicle market by acquiring shares in Beomhan Motors.

Researcher Lee explained, "KIB Plug Energy aims to produce 300 electric buses and achieve sales of 100 billion KRW in 2024 through additional mergers and acquisitions (M&A) of electric vehicle manufacturers," adding, "It is establishing a clear direction for new businesses based on a stable order backlog of heat exchangers."

In a Q&A session, he added, "The acquisition purpose of the largest shareholder, KIB private equity fund, is management participation," and stated, "There is currently no reason to consider an exit, nor is it the right time for that."

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