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Strong Earnings Growth and Expansion Plans Makes Sedania Innovator Stock Attractive

Kenanga Research has highlighted Sedania Inovator Bhd as a potential ESG play, which may appeal to the more ESG-conscious investors seeking exposure within this space.

It said that through its Sustainable Energy segment, SEDANIA primarily offers energy sustainability services that aim to help organisations reduce carbon emissions, while under its Sustainable Healthcare segment, the group offers eco-friendly baby products under the brand name “Offspring”.

The group is expected to post decent strong earnings growth in FY22-23 upon the fruition of its expansion plans.

Kenanga said that it was looking at possible strong earnings growth for FY22-23. Via its Sustainable Energy segment, the group is expected to benefit from further expansion plans of some of its key clients (e.g. Pos Malaysia, Telekom), as well as through the expansion of services offered in the sustainability spectrum.

Meanwhile, its Sustainable Healthcare segment expanded into 13 new countries in 2021 as well as Togo and Nigeria in 2022, all of which are expected to start contributing to the Group’s revenue in 2022 while further market expansions is expected in FY22-23.

By providing fully-funded energy-efficiency solutions and renewable energy systems, SEDANIA’s GreenTech Solutions segment (60% of FY21 operating profit) helps other companies reduce their carbon footprint by retrofitting buildings with holistic energy efficiency and sustainable energy systems that operate on 20-30% lower energy consumption and 30-40% lower energy cost.

SEDANIA acts as the financier, project manager, system designer, and appoints suitable technology providers, essentially providing a single contact and performance accountability to the client.


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