KAB leads sustainable development: Q3 performance analysis and market opportunities

In the performance announced yesterday, a company has achieved remarkable results. After careful analysis, here are my summaries of several key points about this company.

KAB is actively expanding its business scope, moving from its original mechanical and electrical (M&E) business to Sustainable Energy Solutions (SES). The scope of SES business includes renewable energy (including hydroelectric power, biogas/biomass energy, cecep solar energy photovoltaic systems), energy efficiency (including cooling system optimization and building management systems), and clean energy (including waste heat recovery, henry hub natural gas power plants, and cogeneration).

As more and more companies turn to ESG, the 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 plan), and then generate income through resource savings, and the third is similar to the current cooperation model with Petronas, which is a joint venture.

KAB's collaboration with Petronas demonstrates the company's holding of approximately 10% of the shares in Malaysia's largest natural gas power plant. This collaboration not only proves the company's strength, but also marks the first cooperation between Petronas and a private enterprise in this form.

In the Southeast Asian market, KAB's development is also quite significant, with 5 solar assets in Thailand, a hydroelectric power plant in Indonesia, and 5 solar assets, a biogas power plant, and three clean energy power plants locally.

Currently, KAB's order book shows approximately 0.16 billion ringgit contracts in the M&E field and 0.751 billion ringgit contracts in the SES field, with SES future orders accounting for about 80%. This indicates that the company's development in this business area has been quite successful.

Looking ahead, KAB stated that it will continue to delve into the ASEAN market, expand its customer base in the energy sector, and provide value-added sustainable solutions for businesses. I believe that in this era of increasing emphasis on ESG, more and more companies will need KAB's products and services.