GEORGETOWN: Kobay Technology Berhad (“Kobay” or “Group”), a leading engineering solutions provider listed on the Main Market, has announced its third-quarter results (“3QFY24”) and nine-month financial results for the period ended 31 March 2024 (“9MFY24”).
For 3QFY24, Kobay reported a revenue of RM87.8 million, a 13.6% increase from the RM77.3 million recorded in the previous quarter (2QFY24). This growth was primarily driven by improved performance in the manufacturing segment, which saw a 19.8% increase in revenue to RM56.1 million, up from RM46.8 million in 2QFY24. The uptick in sales, particularly in high precision machined components and aerospace components, contributed to a significant 61.4% quarter-on-quarter (QoQ) growth in profit before tax (PBT) for the manufacturing arm, reaching RM5.9 million compared to RM3.6 million in 2QFY24.
This revenue improvement also boosted the bottom line, with 3QFY24 net profit (profit after tax and non-controlling interest) rising by 78.7% QoQ to RM5.5 million from RM3.1 million in the preceding quarter.
Dato’ Seri Koay Hean Eng, Managing Director and Chief Executive Officer of Kobay, commented, “Our manufacturing segment saw increased sales orders, particularly in high precision machined and aerospace components, reflecting our strong 3QFY24 performance. We anticipate this recovery momentum to continue into the second half of 2024. The Group remains committed to broadening our portfolio, further establishing our presence in OEM and high-level assembly services, and maintaining our customer base in the electrical and electronic (E&E) industry. Concurrently, we are enhancing operational efficiency and optimizing our cost structure.”
He added, “The recent reorganization of our pharmaceutical and healthcare segment, completed in early May 2024, was aimed at consolidating and rationalizing operations. We maintain a positive long-term outlook for this segment, driven by a growing emphasis on health, wellness, and preventive care within the community.”
“Additionally, construction of our affordable condominium project, Laguna Bay in southwest Penang, has commenced with sales gradually picking up. Increased tourist arrivals in Langkawi bode well for the local property market, potentially benefiting us. While we remain optimistic about the Group’s long-term prospects, we are mindful of the challenging market environment,” Dato’ Seri Koay concluded.
For the nine-month period of FY24, the Group registered a revenue of RM237.8 million, compared to RM245.2 million in the same period last year. This decline was mainly due to the completion of the Langkawi project, leading to lower contributions from the property development segment. Net profit for 9MFY24 stood at RM10.8 million, down from RM27.5 million in 9MFY23, attributed to softer demand, changes in product sales mix, and elevated costs in the manufacturing segment.
