[Click eStock] "KIB Plug Energy, Evolving into an Eco-Friendly Energy Company... Preparing for the Second Growth Phase"

On the 1st, SK Securities analyzed that KIB Plug Energy is preparing for a second growth phase through discovering overseas clients and entering new businesses. No investment opinion or target price was provided.

KIB Plug Energy is a specialized chemical equipment company centered on heat exchangers. It was established in 1981 under the name ‘Daegyeong Maintenance Service.’ In July of this year, the largest shareholder changed to KIB PE (Private Equity), and the company name was changed to its current one.

Researcher Na Seung-du of SK Securities stated, “KIB Plug Energy has established itself as a traditional strong player in the heat exchanger market based on its long business history,” adding, “Heat exchangers are essential for efficient thermal energy recycling in petrochemical plants, and only a few companies compete in the domestic heat exchanger market.”

He continued, “The company has officially entered the eco-friendly energy business using hydrogen as a medium, marking its evolution from a traditional chemical equipment company to an eco-friendly energy company,” and analyzed, “Considering the increasing importance of heat exchangers in the process of storing, transporting, and utilizing clean hydrogen in compound forms such as ammonia, this is a reasonable business direction.”

In August, KIB Plug Energy acquired a 50% stake in Beomhan Motors, a company specializing in commercial electric and hydrogen vehicles. In September, it announced cooperation on plastic waste and hydrogen energy with KEPCO Engineering & Construction, and also disclosed its investment in Ulsan Hydrogen Power Generation. By participating in the hydrogen fuel cell power generation business and the hydrogen mobility market, the company is gaining on-site technical skills and know-how to strengthen its competitiveness.

Researcher Na said, “Although Korea’s hydrogen industry has experienced some stagnation, dedicated hydrogen power generation purchase bidding started in August, and a clean hydrogen power generation bidding market is expected to form soon,” adding, “This is expected to act as a catalyst for the rebound of the hydrogen fuel cell power generation market and will be an opportunity to enhance the company’s growth potential.”