Analysts positive on KPower’s job prospects as demand for green-energy products increase
KUALA LUMPUR: KPower Bhd’s (KPower) job prospects have been viewed favourably as demand for green-energy related products and projects increase, analsyts observed.
In a report, the research team at AmInvestment Bank Bhd (AmInvestment) said it expected more contract award announcements in the renewable energy infrastructure space, especially in Southeast Asia and the Middle East in the coming months.
This was because business is gradually returning to normal (on the back of the vaccine rollout) and project owners wrapping up their tender evaluations, it said.
“As such, there could be good news to KPower with an outstanding tender book of RM3.9 billion of which about 75 per cent are energy-related jobs (hydropower plants and solar-related jobs), while the balance are utilities-related works.
“A pick-up in job wins also means KPower is on track to meet our assumption for annual job wins of RM1.4 billion in FY21 to FY23F (June),” it said.
Year to date in FY21, AmInvestment noted that
KPower has secured new jobs worth RM703.6 million. At present, its outstanding construction order book stands at about RM1.7 billion.
“We continue to like KPower for the bright prospects of renewable energy, underpinned by the global trends towards clean and sustainable energy and carbon neutrality to combat climate change.
“We also like its strong earnings visibility and growth potential underpinned by its RM1.7 billion order backlog on green utility projects, coupled with a massive tender book of RM3.9 billion,” the research team added.