Kobay’s 2Q net profit more than doubles on strong showing by manufacturing segment

Kobay’s 2Q net profit more than doubles on strong showing by manufacturing segment
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KUALA LUMPUR (Feb 17): Kobay Technology Bhd’s net profit more than doubled to RM14.52 million for the second quarter ended Dec 31, 2021, from RM5.95 million a year prior, on the back of its manufacturing segment’s strong performance.

Earnings per share surged to 4.8 sen from 1.98, according to the precision metal components manufacturer’s bourse filing.

Revenue for the quarter jumped nearly three folds to RM92.83 million from RM35.8 million.

Kobay said its manufacturing segment’s profit before tax (PBT) more than tripled to RM18.94 million from RM6.26 million a year earlier, as revenue surged 119.41% to RM65.68 million from RM29.93 million.

“The [manufacturing segment] delivered a strong performance compared with its preceding year’s corresponding quarter, mainly due to high demand from semiconductor, electrical and electronics industries,” the group said.

Meanwhile, the group’s property development segment posted a 70.4% increase in PBT to RM1.16 million from RM679,000, while revenue rose 6.47% higher to RM5.6 million from RM5.3 million.

Kobay’s other operating segments — pharmaceutical and healthcare products, property letting, hotel operation and money lending businesses — saw their PBT balloon to RM2.81 million from RM360,000, with revenue swelling to RM21.56 million from RM603,000.

“Revenue from other segments delivered better results in the current quarter compared with the preceding year’s corresponding quarter, mainly contributed by the newly acquired pharmaceutical and healthcare products business,” the group said.

Going forward, Kobay Technology said it anticipates its manufacturing segment to continue to grow at a strong pace on the current semiconductor shortage coupled with increasing demand for semiconductor chips in a post-Covid-19 environment.

“In addition, the [segment] is in the midst of setting up a new factory plant to cater for its venture into the manufacturing of aluminium frames for solar panels for renewable energy-related businesses, further expanding the clientele exposure and ultimately elevating the performance of the [segment].

“The new plant is expected to kick off operations by the beginning of 4QFY22,” it added.

Kobay’s share price closed two sen or 0.42% lower at RM4.71, giving the group a market capitalisation of RM1.54 billion.

S Kanagaraju