§ The Company used to be involved in the M&E segment for property. Company started journey into sustainable energy solutions (“SES”) in 2018 and begun its transformation and diversification into SES.
§ One of the largest SES projects secured thus far is the construction contract awarded by Petronas Gas in early 2023, amounting to RM230m. This includes the EPCC work for a 52 MW gas power plant in Sabah
§ The gas power plant is expected to be the sole source of energy supply to Petronas’s upcoming floating LNG, slated to be Sabah’s first nearshore natural gas facility with minimum capacity of 2.0m tonnes p.a.
§ As part of the arrangement, KAB will also subscribe to a 10% stake in the plant.
§ To date, the Company provides a wide range of alternative sustainable energy solutions which includes:
- Energy saving solutions (chiller optimisation, building management systems)
- Renewable energy (owns solar assets and looking to acquire mini-hydro and biogas)
- Clean energy (owns waste heat recovery plant, co-generation plant and gas power plant in the future)
§ Total capacity under its assets is approximately 80MW (including new projects)
§ Majority of its concession assets have remaining tenure of more than 10 years and will be able to deliver a reliable stream of sustainable income for the future
Financials Update for 1HFY2023
§ PAT for first 6 months was RM5.9 million, an increase of 380.4% from the first half last year. First half PAT already surpassed the past 3 years annual PAT
§ SES segment was the key driver, recording an increase of 182.6% increase in operating profit to RM6.4 million
§ Operating profit margin for SES segment very healthy at 49%
Prospects
§ Company expects acquisition of its 2 projects, namely its 11MW mini hydroplant in Indonesia and 2.4MW biomas plant in Kedah to be completed in the second half of this year
§ From retail briefing by RHB, other than the 2 upcoming projects expected to be completed they still have more SES projects in the pipeline as their net gearing remain low at 0.17x
§ Orderbook stands at RM193 million and RM785 million for M&E and SES divisions respectively
Conclusion
§ Company’s momentum in SES segment is growing, expect 2HFY2023 to be as strong or stronger, we might be witnessing a new market leader to compete with other renewable energy competitors such as Solarvest, Saimaden
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
mhisham
3 posts
Posted by mhisham > 2023-08-08 16:39 | Report Abuse
PP ni tak nak complete ke?