PETALING JAYA: Kelington Group Bhd
’s eventual success in execution of a 2MW green-hydrogen hub will be a catalyst for the group to expand further into green hydrogen, says Kenanga Research.
The research house was positive on the recent memorandum of understanding (MoU) inked by the group as the project aims to validate a fully renewable hydropower-to-electrolyser pathway and seed early transport/industrial demand in Selangor.
Pending the term sheet, it maintained its financial years 2025 and 2026 forecasts and reiterated its “outperform” call on the stock with an unchanged target price of RM6.15 a share.
The risks to its call include a slowdown in wafer fab investment, worsening Sino-US chip war, and low utilisation of its liquefied carbon dioxide plants.
The research house liked Kelington because it is a direct proxy to the front-end wafer fab expansion, strong earnings visibility supported by an outstanding order book exceeding RM1.3bil and a robust tender book of over RM5bil.
Its strong foothold in multiple markets including Malaysia, Singapore and China and progressive margin expansion.
Kelington entered into a two-year MoU with Selangor’s Worldwide Energy Development and SKS Coachbuilders to co-develop the green-hydrogen hub at a small hydropower plant in Batang Kali.
It will lead the electrolyser’s build, production, and market development.
The project offers a credible pilot to catalyse Selangor’s hydrogen ecosystem and offtake in municipal/industrial fleets, supported by rising global momentum.
More than 1,000 hydrogen refuelling stations are in operations worldwide and the installed electrolyser capacity is estimated at 2GW.
