PETALING JAYA: Kejuruteraan Asastera Bhd (KAB), an electrical and mechanical engineering services provider, has expanded its presence in Thailand to provide installation of solar photovoltaic (PV) systems in the country.
In a statement yesterday, KAB said it recently secured four new projects with a combined installed capacity of 3, 912-kilowatt peak solar PV systems under the build-own-operate-transfer model.
The projects have a combined capital expenditure of approximately RM11.4mil and the development expected to be completed within a year from the signing of the power purchase agreements (PPAs).
The four projects have PPA contracts between 10 years and 20 years.
“There is no doubt that KAB is actively expanding its business into green energy solutions. “Our successful penetration into the Thailand market is a testament of our strategic execution as we continue to grow this business segment aggressively, ” said KAB managing director Datuk Lai Keng Onn.
He said the group is currently in the midst of finalising a few more projects in Malaysia and Thailand with a combined capacity of 10, 206-kilowatt peak.
“Barring any unforeseen circumstances, we are confident in securing them within the next month or so and this will ultimately bolster our profitability with the stability of the recurring income through the execution of the PPAs, ” he added.
At the moment, the company has a total of 5, 492-kilowatt peak installed capacity of solar PV systems that will generate sustainable recurring income for up to 25 years.
“To recap, our first project in Thailand was to provide chiller optimisation systems for 11 Robinsons malls across Thailand and we are delighted that we are now able to extend our capabilities to provide solar PV systems.
“Moving forward, we are tendering for a total installed capacity of about 62, 703-kilowatt peak of solar PV systems in Malaysia, Thailand and Vietnam, which will augment our position in the Asian region, ” Lai said.
KAB’s maiden solar project started in February 2021 through the subscription for an 80% equity interest in Mayang Hijau Sdn Bhd (MHSB) by KAB’s wholly-owned subsidiary KAB Smart Solar Energy Sdn Bhd.
MHSB is a company that builds, owns and operates solar PV systems.
Shares in KAB closed five sen or 7.14% higher to 75 sen yesterday giving it a market capitalisation of RM1.27bil.