[Click eStock] "KIB Plug Energy, Next Hydrogen Value Chain After Heat Exchanger"

Daishin Securities analyzed on the 8th that KIB Plug Energy is entering the hydrogen value chain, which will lead to improved performance.

Park Jang-wook, a researcher at Daishin Securities, stated in a report on the same day, “KIB Plug Energy is a chemical equipment company primarily manufacturing and supplying heat exchangers,” and explained, “Heat exchangers are essential chemical equipment used in plant investments such as refining and chemical industries, and during periods of low oil prices, the reduction in suppliers has created a supplier-dominant market.”

Researcher Park added, “KIB Plug Energy has received an order from Linde for heat exchangers used in ammonia production for green/blue hydrogen,” and analyzed, “Hydrogen heat exchangers are known to have an ASP about 3 to 5 times higher than those for chemical use, so as hydrogen infrastructure investment increases, additional improvement in separate segment performance is expected.”

He also mentioned, “They have bid for a hydrogen fuel cell business utilizing waste plastics and plan to expand to a scale of 100MW by 2025,” adding, “Sales of 35 billion KRW and operating profit of 7.3 billion KRW are expected per 20MW, and preparations are underway to start construction of fuel cell facilities ranging from 20 to 60MW from this year through next year.”

Furthermore, he analyzed, “With the acquisition of Beomhan Motors, electric bus deliveries are expected to begin next year, and currently holding a 50% stake, the equity method income will be reflected in the earnings,” and added, “After electric buses, plans are in place to supply hydrogen buses. Hydrogen buses have a price more than twice that of electric buses.”

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