[Click eStock] "KIB Plug Energy Plans Commercialization of Hydrogen Buses"

Sangsangin Securities announced on the 4th that KIB Plug Energy is expanding its business area to the hydrogen sector based on chemical equipment technology. No investment opinion or target price was provided.

KIB Plug Energy is a specialized exporter of chemical equipment such as heat exchangers, pressure vessels, and storage tanks. Its main customers are EPC (Engineering, Procurement, and Construction) contractors participating in plant construction projects. The primary equipment is heat exchangers, which are used in oil refineries, power plants, and petrochemical plants.

Researcher Lee So-jung of Sangsangin Securities said, "Although the EPC industry was sluggish due to project delays caused by COVID-19, falling oil prices, and high interest rates, the ordering environment is improving as oil prices have recently stabilized around $70 per barrel. We expect large-scale infrastructure project orders to resume in the future."

He forecasted sales of 140.4 billion KRW and operating profit of 14 billion KRW for this year. The expected order volume by the end of this year is around 140 billion KRW, most of which will be reflected next year.

The company has entered the hydrogen business based on its chemical equipment technology. It plans to secure the status of a power producer by establishing fuel cell power generation facilities and expanding to hydrogen raw material production facilities.

Researcher Lee emphasized, "We plan to carry out a total of five projects this year and next, commercialize from 2025, and expect net profit to be around 10 billion KRW. Before operation, we also plan to supply heat exchangers, humidifiers, and other equipment necessary for power generation facilities to generate additional profits."

Meanwhile, KIB Plug Energy acquired a 50% stake in Beomhan Motors, a company specializing in eco-friendly vehicles. It is entering the electric city bus market, which is eligible for government support, and ultimately plans to develop and commercialize hydrogen buses.

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