Latest news with #SemiconductorIndustryAssociation
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
20-05-2025
- Business
- Yahoo
March Semiconductor Uptick Masks Looming Tariff Risks
Global semiconductor sales surged to $55.9 billion in March, recording the first sequential increase after two months of declines. March sales climbed 1.8 % month-over-month and jumped 18.8 % year-over-year, driven by renewed investments in Europe, China and Asia Pacific, which saw gains between 2.4 % and 5.7 % compared to February. The Americas, despite accounting for a large share of the market, dipped 0.4 % to $18.57 billion as U.S. demand cooled. The U.S. Department of Commerce's probe into semiconductor imports, potentially paving the way for tariffs, looms over the sector. The Semiconductor Industry Association warned that untargeted tariffs risk reducing American competitiveness by raising the cost of developing technology and manufacturing chips here at home. For the first quarter, global chip sales totaled $167.7 billion, up 18.8 % from Q1 2024 but down 2.8 % versus Q4 2024. Year-to-date, the Americas lead with a 45.3 % year-on-year surge, followed by Asia Pacific at 15.4 % growth, while China posted a 7.6 % rise in February alone. Why It Matters: The rebound in March suggests regional diversification is supporting semiconductor demand even as U.S. markets cool, but looming tariffs could undercut this momentum. Investors will be watching Q2 sales and U.S. trade-policy developments for clues on whether this uptrend can persist. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
March Semiconductor Uptick Masks Looming Tariff Risks
Global semiconductor sales surged to $55.9 billion in March, recording the first sequential increase after two months of declines. March sales climbed 1.8 % month-over-month and jumped 18.8 % year-over-year, driven by renewed investments in Europe, China and Asia Pacific, which saw gains between 2.4 % and 5.7 % compared to February. The Americas, despite accounting for a large share of the market, dipped 0.4 % to $18.57 billion as U.S. demand cooled. The U.S. Department of Commerce's probe into semiconductor imports, potentially paving the way for tariffs, looms over the sector. The Semiconductor Industry Association warned that untargeted tariffs risk reducing American competitiveness by raising the cost of developing technology and manufacturing chips here at home. For the first quarter, global chip sales totaled $167.7 billion, up 18.8 % from Q1 2024 but down 2.8 % versus Q4 2024. Year-to-date, the Americas lead with a 45.3 % year-on-year surge, followed by Asia Pacific at 15.4 % growth, while China posted a 7.6 % rise in February alone. Why It Matters: The rebound in March suggests regional diversification is supporting semiconductor demand even as U.S. markets cool, but looming tariffs could undercut this momentum. Investors will be watching Q2 sales and U.S. trade-policy developments for clues on whether this uptrend can persist. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
16-05-2025
- Business
- The Star
Global chip sales growth momentum to sustain
TA Research reiterated its 'overweight' stance on the semiconductor sector. PETALING JAYA: The positive momentum of global semiconductor sales, which posted another healthy growth in March, will continue to see strong demand from artificial intelligence, 5G and electric vehicles. On another front, the plan by the administration of US president Donald Trump to rescind and revise a Biden-era rule that restricts the export of advanced AI chips is positive, said TA Research. 'We view this development positively, as it could provide Malaysia with greater access to advanced technologies. 'This is particularly in key industries such as data centres. 'In addition, the potential relaxation of export controls may attract more foreign investment and partnerships, further strengthening Malaysia's position in the global semiconductor supply chain,' TA Research said in a report yesterday. According to the research firm, the ongoing trade tensions between the United States and China could create greater trade diversion opportunities for Malaysia under the China Plus One strategy. Meanwhile, the government recently announced the eligibility criteria for local companies seeking to participate in the advanced chip design framework under Malaysia's collaboration with UK-based Arm Holdings plc. 'We view this latest development positively. 'This is because it brings us one step closer to helping local companies move up the value chain in the global semiconductor industry.' In March, global semiconductor sales reached US$55.9bil, marking the 17th consecutive month of year-on-year (y-o-y) sales recovery. TA Research added the y-o-y improvement was driven by all regions except Europe. The Americas led the growth, followed by the Asia-Pacific region, China and Japan. According to the Semiconductor Industry Association, the global semiconductor materials market revenue increased by 3.8% y-o-y to US$67.5bil in 2024. The growth was mainly driven by higher demand for advanced materials used in high-performance computing and high-bandwidth memory manufacturing. TA Research reiterated its 'overweight' stance on the semiconductor sector. It has kept its 'buy' calls on Inari Amertron Bhd , Unisem (M) Bhd , Malaysian Pacific Industries Bhd and Elsoft Research Bhd .
