KAB to expand further into sustainable energy solutions

KAB to expand further into sustainable energy solutions

07 Sep 2022

Kejuruteraan Asastera Bhd (KAB) has proposed a diversification of its business to include the provision of sustainable energy solutions (SES).

The group is principally involved in the provision of mechanical and electrical (M&E) engineering services. The group’s core business is electrical engineering services and involves the installation, testing and commissioning of electrical systems. The group also provides mechanical engineering services including installation, testing and commissioning of air-conditioning and mechanical ventilation systems.

As part of the group’s strategy to diversify its business and create an additional source of income on top of the existing contribution from its core M&E engineering business, the group has been steadily venturing into the SES business since 2019.

In view that both businesses are complementary with each other and may share similar target customer segments, this initiative is in line with the group’s aim of becoming a one-stop engineering and energy solutions provider in the market.

Under the SES business, the group has been involved in the provision of energy efficient solutions, clean energy generation and renewable energy generation.

“Due to certain similarities in the nature of the solutions provided to customers under the group’s SES business and M&E engineering business, both businesses share similar target customer segments. In addition, although the group’s SES business and M&E engineering business are operating independently from one another, they can still share certain technical know-how and knowledge that may be of benefit to each other. This initiative is in line with the group’s aim of becoming a one-stop engineering and energy solutions provider in the market,” KAB said in a stock exchange filing.

The proposed diversification is expected to contribute positively to the future consolidated earnings of the group. It is subject to approval from the shareholders at an EGM to be convened.

Source: The Sun Daily