Kobay Looks To Property Business As Semiconductor Slows Down

Kobay Technology Berhad announced its second-quarter results and six months financial results for the period ended 31 December 2022 (“1HFY23”) with the Group’s 1HFY23 revenue rising 7.9% year-on-year to RM171.6 million from RM159 million a year ago, attributed to stronger contribution from the property development as well as the pharmaceutical and healthcare divisions.

Meanwhile, its profit after tax and non-controlling interest for the current period under review stood at RM19.6 million as compared to RM24.2 million in 1HFY22. Notwithstanding the top-line improvement, the manufacturing division experienced a change in product sales mix, a slowdown in demand, and two of its new projects that are in the incubation stage which incurred a pre-operating cost of RM3 million in 2QFY23.

Profit before tax from the property development soared 3.8 times to RM5.9 million in 1HFY23 versus RM1.6 million in the previous year corresponding period driven by higher construction progress.

Managing Director and Chief Executive Officer of Kobay, Dato’ Seri Koay Hean Eng “The slowdown in the semiconductor and electrical and electronic products (“E&E”) industries have impacted our manufacturing business to a certain extent. Nevertheless, we expect the performance of this business to sustain in FY23 while we expand our clientele exposure into renewable energy-related businesses. This, along with our plans to rationalise our manufacturing footprint and enhance our overall cost structure, will enable us to navigate through the headwinds. Separately, Kobay also has two new projects underway that are making good progress and offer exciting prospects.”

For the current quarter under review, the Group reported a net profit of RM9 million on the back of a revenue of RM82.1 million. This was lower on a YoY basis largely due to the slowdown of the semiconductor market coupled with the abovementioned factors.

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