Kobay Technology Berhad (Kobay) posted a net profit of RM1.5 million for its first quarter results for the period ended 30 September 2023
(1QFY24) compared to RM10 million in the same period last year on subdued demand in the manufacturing segment, among others.
In a statement today (Nov 16), the group said in addition to the subdued demand, changes in product sales mix along with elevated operational cost related to the solar frame and electronic manufacturing services (EMS) projects, affected the group’s earnings.
The engineering solutions provider’s year-on-year (YoY) revenue also also stood lower at RM72.8 million in 1QFY24 versus RM89.4 million the previous year, down by 18.6 %.
“This was largely due weakened market demand, which affected the manufacturing business as well as lower contribution from the property segment following the completion of a project in FY23,” it said.
However, quarter-on-quarter (QoQ), Kobay’s revenue rose 6% to RM72.8 million from RM68.7 million in the immediate preceding quarter on the back of slight uptick in demand from the aerospace industry for the manufacturing business.
“This led to an improvement in profit after tax and non-controlling interest (net profit) to RM1.5 million for the current quarter under review,” the company added.
Its managing director and chief executive officer Datuk Seri Koay Hean Eng said looking ahead, the global uncertainties are anticipated to prevail and business operating landscape is expected to remain challenging.
“Given these demanding conditions, we will continue to leverage on our solid business fundamentals to weather through the headwinds.
“The group is committed to staying agile and adaptable in order to continuously refine our strategies and operations,” he said.
Koay said, for its manufacturing business, the group is looking to sustain our current clientele portfolio within the electrical and electronic (E&E) industry.
“We remain optimistic on our strategic customer base diversification by venturing into the renewable energy sector. At the same time, we continue to undertake a cautious approach on this front in light of the economic climate.
Meanwhile, he said the prospect of increased arrivals with the potential to stimulate the property markets in both Langkawi and Penang bodes well for the group’s property division.
“Nevertheless, Kobay is cognizant of the upheaval of the industry such as elevated building material and borrowing costs.”
He added: “Lastly, for the pharmaceutical and healthcare segment, our emphasis will be on expanding both product range and geographical reach while maintaining cost control.”
