Latest news with #KobayTechnologyBhd
The Sun
26-05-2025
- Business
- The Sun
Kobay Technology eyes growth in contract manufacturing, advanced technologies
GEORGETOWN: Main market-listed leading engineering solutions provider, Kobay Technology Bhd's net profit decreased 87.14% to RM705,000 for the third quarter (Q3 ended March 31, 2025 (FY25) from RM5.48 million posted in the same quarter last year due to intensified pricing competition and changes in the overall product mix. Revenue for the quarter stood at RM81.4 million compared to RM87.8 million posted in Q3 FY24 due to a shift in sales towards a lower-margin product mix and subdued market demand for higher-margin products during the quarter. For the nine-month (9M) period, Kobay recorded an 8.2% year-on-year (YoY) increase in revenue, reaching RM257.3 million compared to RM237.8 million in the 9M of FY24. The growth was primarily driven by commendable growth in the manufacturing segment, which saw a 10.9% YoY rise in revenue to RM164.2 million in 9M FY25, up from RM148.1 million in 9M FY24. Higher sales orders across the core mainly propelled this improvement in manufacturing business units, though this was partially offset by a softer demand for higher-margin products and the incubating project, which contributed substantially, resulting in a lower margin recorded. Profit before tax (PBT) for the manufacturing segment rose by 2.7% YoY to RM11.7 million, versus RM11.4 million in 9M FY24. Reflecting the top-line performance, the group's net profit for 9M FY25 saw a modest climb of 0.9% YoY to RM10.2 million vis-à-vis RM10.1 million in 9M FY24. Managing Director and CEO Datuk Seri Koay Hean Eng said the company's 9M FY25 results highlight the group's resilience amid a challenging and volatile operating environment, characterised by tariffs, export controls, and supply chain restrictions that continue to affect the global economy. He said this policy uncertainty complicates investment and manufacturing decisions, potentially impacting long-term capacity planning. On a brighter note, Koay said the global semiconductor industry continues to show vitality, with the Semiconductor Industry Association (SIA) reporting an 18.8% YoY increase in global semiconductor sales to US$167.7 billion in the first quarter of 2025. The World Semiconductor Trade Statistics (WSTS) also projects the industry to reach approximately US$697 billion this year, an 11.2% surge. 'Against this backdrop, the group is actively advancing its diversification efforts into the contract manufacturing (CM) services as part of our broader strategic approach to adapt to market conditions. 'These efforts, combined with investments in advanced manufacturing technologies, are expected to drive long-term growth and stabilise performance on a YoY basis. 'Alongside these efforts, we remain optimistic about the prospects of our property development division. This outlook is fuelled by ongoing infrastructure projects, government initiatives, and a revival in tourism activity, all expected to bolster property markets in key locations such as Langkawi and Penang. 'Moving forward, we intend to time upcoming product launches to align with evolving buyer trends while exercising prudent risk management and maintaining operational discipline. 'Our pharmaceutical and healthcare division expects steady demand in the future, supported by growing health awareness, preventive care trends, and demographic changes such as an ageing population. 'Nevertheless, inflation and rising living costs may weigh on consumer appetite soon. To navigate this, we are expanding our product range, exploring new market segments such as high-margin niche medical products, improving operational efficiency, and strengthening our digital marketing efforts to enhance brand presence. 'As we progress, we will prioritise agility and responsiveness as essential for navigating an increasingly complex and dynamic market landscape. By remaining adaptable and proactive, we aim to manage challenges effectively while building sustainable growth over time,' Koay said.
The Sun
26-05-2025
- Business
- The Sun
SunBiz 26-05- 2025 04:58 PM
GEORGETOWN: Main market-listed leading engineering solutions provider, Kobay Technology Bhd's net profit decreased 87.14% to RM705,000 for the third quarter (Q3 ended March 31, 2025 (FY25) from RM5.48 million posted in the same quarter last year due to intensified pricing competition and changes in the overall product mix. Revenue for the quarter stood at RM81.4 million compared to RM87.8 million posted in Q3 FY24 due to a shift in sales towards a lower-margin product mix and subdued market demand for higher-margin products during the quarter. For the nine-month (9M) period, Kobay recorded an 8.2% year-on-year (YoY) increase in revenue, reaching RM257.3 million compared to RM237.8 million in the 9M of FY24. The growth was primarily driven by commendable growth in the manufacturing segment, which saw a 10.9% YoY rise in revenue to RM164.2 million in 9M FY25, up from RM148.1 million in 9M FY24. Higher sales orders across the core mainly propelled this improvement in manufacturing business units, though this was partially offset by a softer demand for higher-margin products and the incubating project, which contributed substantially, resulting in a lower margin recorded. Profit before tax (PBT) for the manufacturing segment rose by 2.7% YoY to RM11.7 million, versus RM11.4 million in 9M FY24. Reflecting the top-line performance, the group's net profit for 9M FY25 saw a modest climb of 0.9% YoY to RM10.2 million vis-à-vis RM10.1 million in 9M FY24. Managing Director and CEO Datuk Seri Koay Hean Eng said the company's 9M FY25 results highlight the group's resilience amid a challenging and volatile operating environment, characterised by tariffs, export controls, and supply chain restrictions that continue to affect the global economy. He said this policy uncertainty complicates investment and manufacturing decisions, potentially impacting long-term capacity planning. On a brighter note, Koay said the global semiconductor industry continues to show vitality, with the Semiconductor Industry Association (SIA) reporting an 18.8% YoY increase in global semiconductor sales to US$167.7 billion in the first quarter of 2025. The World Semiconductor Trade Statistics (WSTS) also projects the industry to reach approximately US$697 billion this year, an 11.2% surge. 'Against this backdrop, the group is actively advancing its diversification efforts into the contract manufacturing (CM) services as part of our broader strategic approach to adapt to market conditions. 'These efforts, combined with investments in advanced manufacturing technologies, are expected to drive long-term growth and stabilise performance on a YoY basis. 'Alongside these efforts, we remain optimistic about the prospects of our property development division. This outlook is fuelled by ongoing infrastructure projects, government initiatives, and a revival in tourism activity, all expected to bolster property markets in key locations such as Langkawi and Penang. 'Moving forward, we intend to time upcoming product launches to align with evolving buyer trends while exercising prudent risk management and maintaining operational discipline. 'Our pharmaceutical and healthcare division expects steady demand in the future, supported by growing health awareness, preventive care trends, and demographic changes such as an ageing population. 'Nevertheless, inflation and rising living costs may weigh on consumer appetite soon. To navigate this, we are expanding our product range, exploring new market segments such as high-margin niche medical products, improving operational efficiency, and strengthening our digital marketing efforts to enhance brand presence. 'As we progress, we will prioritise agility and responsiveness as essential for navigating an increasingly complex and dynamic market landscape. By remaining adaptable and proactive, we aim to manage challenges effectively while building sustainable growth over time,' Koay said. With investments in advanced manufacturing technologies, Kobay Technology is expected to drive long-term growth and stabilise performance on a YoY basis.
Yahoo
07-04-2025
- Business
- Yahoo
Capital Allocation Trends At Kobay Technology Bhd (KLSE:KOBAY) Aren't Ideal
To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. Having said that, from a first glance at Kobay Technology Bhd (KLSE:KOBAY) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Kobay Technology Bhd is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.051 = RM23m ÷ (RM610m - RM153m) (Based on the trailing twelve months to December 2024). Thus, Kobay Technology Bhd has an ROCE of 5.1%. In absolute terms, that's a low return and it also under-performs the Machinery industry average of 8.2%. Check out our latest analysis for Kobay Technology Bhd Historical performance is a great place to start when researching a stock so above you can see the gauge for Kobay Technology Bhd's ROCE against it's prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Kobay Technology Bhd . When we looked at the ROCE trend at Kobay Technology Bhd, we didn't gain much confidence. To be more specific, ROCE has fallen from 12% over the last five years. However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run. While returns have fallen for Kobay Technology Bhd in recent times, we're encouraged to see that sales are growing and that the business is reinvesting in its operations. And the stock has done incredibly well with a 171% return over the last five years, so long term investors are no doubt ecstatic with that result. So while the underlying trends could already be accounted for by investors, we still think this stock is worth looking into further. On a final note, we found 2 warning signs for Kobay Technology Bhd (1 makes us a bit uncomfortable) you should be aware of. While Kobay Technology Bhd may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
12-02-2025
- Business
- Yahoo
Kobay Technology Bhd's (KLSE:KOBAY) investors will be pleased with their impressive 143% return over the last five years
When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. Long term Kobay Technology Bhd. (KLSE:KOBAY) shareholders would be well aware of this, since the stock is up 130% in five years. In the last week the share price is up 3.7%. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. See our latest analysis for Kobay Technology Bhd To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Kobay Technology Bhd's earnings per share are down 2.2% per year, despite strong share price performance over five years. By glancing at these numbers, we'd posit that the decline in earnings per share is not representative of how the business has changed over the years. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics. On the other hand, Kobay Technology Bhd's revenue is growing nicely, at a compound rate of 15% over the last five years. In that case, the company may be sacrificing current earnings per share to drive growth. The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). This free interactive report on Kobay Technology Bhd's balance sheet strength is a great place to start, if you want to investigate the stock further. We'd be remiss not to mention the difference between Kobay Technology Bhd's total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that Kobay Technology Bhd's TSR of 143% over the last 5 years is better than the share price return. We're pleased to report that Kobay Technology Bhd shareholders have received a total shareholder return of 24% over one year. That gain is better than the annual TSR over five years, which is 19%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 2 warning signs for Kobay Technology Bhd (1 shouldn't be ignored) that you should be aware of. We will like Kobay Technology Bhd better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
