KAB leads sustainable development: Q3 performance analysis and market opportunities

Among the results announced yesterday, one company achieved remarkable results. After careful analysis, here's my summary of a few key points about this company.

KAB is actively expanding its business scope from its original electromechanical (M&E) business to sustainable energy solutions (SES). SES's business scope covers renewable energy (including hydropower, biogas/biomass energy, solar photovoltaic systems), energy efficiency (including cooling system optimization and building management systems), and clean energy (including waste heat recovery, natural gas power plants, and cogeneration).

As more companies switch to ESG, demand for cleaner energy is also increasing, which is one of the main reasons for KAB's business growth.

KAB's SES business is divided into three models: the first is to sell power generation assets to customers after EPCC, the second is to build power generation projects for customers (zero capital expenditure plans) and then obtain revenue through resource savings, and the third is a joint venture similar to the current cooperation model with Petronas.

KAB's partnership with Petronas shows that the company holds about 10% of the company's shares in Malaysia's largest natural gas power plant. Not only does this form of cooperation prove the company's strength, it's also the first time Petronas has partnered with a private company in this form.

In the Southeast Asian market, KAB's development is also quite obvious. For example, it has 5 solar assets in Thailand and a hydroelectric power plant in Indonesia. Locally, there are 5 solar assets, a biogas power plant, and 3 clean energy power plants.

Currently, KAB's order book shows that there are about RM160 million contracts in the M&E sector, and RM751 million contracts in the SES sector. SES accounts for about 80% of future orders. This indicates that the company has developed quite successfully in this area of business.

Looking ahead, KAB said it will continue to deepen into the ASEAN market, expand its customer base in the energy sector, and provide businesses with sustainable solutions that add value. I believe that in this era of increasing attention to ESG, more and more companies will need KAB's products and services.