KOBAY (6971): KOBAY TECHNOLOGY BH posted higher Q2 earnings driven by positive manufacturing sales

KOBAY (6971): KOBAY TECHNOLOGY BH posted higher Q2 earnings driven by positive manufacturing sales

Kobay Technology Bhd is expecting to add another income stream in the form of aluminium extrusion for solar panel frames upon the commissioning of our new plant, which is slated in the third quarter (Q3) FY22.

KUALA LUMPUR: Engineering solutions provider Kobay Technology Bhd's revenue for the second quarter (Q2) ended 31 December 2021 (FY22) rose 159.3 per cent year-on-year (YoY) to RM92.8 million compared to RM35.8 million in the same quarter FY21.

Net profit jumped 143.9 per cent YoY to RM14.5 million from RM6.0 million a year earlier.

The growth was mainly due to a strong manufacturing business with robust orders from the semiconductor and electrical and

electronics (E&E) industries, which also included a new high-level assembly product.

The segment's revenue rose twofold to RM65.7 million in Q2 FY22.

The property development segment reported a profit before tax (PBT) of RM1.2 million on the back of RM5.6 million revenue.

Other operating segments, which encompass the new pharmaceutical and healthcare business contributed revenue and PBT of

RM21.6 million and RM2.8 million respectively.

On a quarter-on-quarter (QoQ) basis, Q2 FY22 revenue of RM92.8 million was a 40.4 per cent climb from RM66.1 million in Q1 FY22.

Meanwhile, this quarter's net profit of RM14.5 million was 49.3 per cent higher than the RM9.7 million reported in the preceding quarter.

For the first half (1H) of FY22, Kobay's revenue came in at RM159.0 million, a 112.2 per cent YoY increase from 1H FY21.

In tandem with the top-line growth, net profit for the first half climbed 116.7 per cent YoY to RM24.2 million.

Chief executive officer and managing director Datuk Seri Koay Hean Eng said the company net earnings not only marked a fifth consecutive quarter of rising earnings but also a positive quarter in the company's three-decade-plus long history.

"The elevated profit for the manufacturing division chiefly stemmed from growth in orders from our semiconductor and E&E customers.

"Other than that, we also benefitted from our new venture into the high-level assembly of advanced data server machines.

"Order visibility for these servers remains robust, and we are working hard to ramp up our production in the coming months to meet the rising demand," he said in a statement today.

Koay said the company is also expecting to add another income stream in the form of aluminium extrusion for solar panel frames upon the commissioning of our new plant, which is slated in the third quarter (Q3) FY22.

"Our continuous appetite to expand to new product categories that are within our scope of competence is one of the key reasons for our business longevity and consistent rise.

"The future of the company remains promising premised on the multiple growth engines mentioned earlier, some of which have already begun to come into play.

"Coupled with the bright global outlook for the semiconductor and E&E industries, we expect to see many more breakthrough performances for Kobay over the foreseeable future," Koay said.

https://www.nst.com.my/business/2022/02/772309/kobay-technology-posted-higher-q2-earnings-driven-positive-manufacturing