[Click eStock] “KIB Plug Energy Prepares for a New Leap Centered on Energy”

Heungkuk Securities analyzed on the 21st that 2024 will be a period of preparing for a new leap through a business structure reorganization focused on energy for KIB Plug Energy. No separate investment opinion or target price was presented.

KIB Plug Energy is a specialized company with 42 years of experience in manufacturing heat exchangers. Heat exchangers are equipment used in various fields such as chemical plants, air conditioning units, and hydrogen plants. They are custom-designed and manufactured in various forms depending on individual and project purposes, with highly skilled technical personnel having over 10 years of experience being the core competitive advantage.

Researcher Choi Jong-kyung of Heungkuk Securities stated, “KIB Plug Energy achieved sales growth by securing large-scale orders after COVID-19,” and added, “This year, they secured an order backlog similar to the previous year, and next year’s orders are also expected to continue a good trend.”

He continued, “Contract negotiations are mainly taking place in the Middle East and the United States, including orders related to ammonia and methanol,” and said, “Since the products are made of stainless steel, the sales per ton are about 5 to 6 times higher than conventional heat exchangers, so profitability is expected to gradually improve as energy-related orders increase.”

KIB Plug Energy has steadily grown centered on the heat exchanger business and is now promoting structural improvement by reorganizing its business structure to focus on energy. Currently, the new energy business is focused on hydrogen power generation and hydrogen production, aiming for a total of 100MW (megawatts) of hydrogen fuel cell power generation. In addition, in September of this year, it signed an MOU (Memorandum of Understanding) on hydrogen production technology with Woosuk ENC, officially starting its hydrogen business.

Researcher Choi said, “The company is currently in the process of purchasing land located in Hwaseong-si, Gyeonggi-do, for hydrogen fuel cell power generation,” and added, “Since an LOC (Letter of Commitment) contract has already been signed, sales recognition is expected to occur immediately once the production facility is expanded.”

He added, “The point at which both the hydrogen fuel cell power generation business and the high-temperature pyrolysis hydrogen production business are fully operational is expected to be in 2025,” and “Therefore, 2024 is expected to be a new leap forward as the energy business is fully launched.”

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