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Kobay Technology's Q3 net earnings doubled to RM15.1mil driven by demand in semiconductor, E&E industries

KUALA LUMPUR: Engineering solutions provider Kobay Technology Bhd (KTB) posted a net profit of RM15.1 million for the third quarter (Q3) ended 31 March 2022 (FY22) compared to RM7.1 million posted in the same quarter last year.

Revenue rose 184.1 per cent year-on-year (YoY) to RM100.1 million in Q3 FY22 from the RM35.2 million reported last year.

Growth mainly came from the manufacturing segment, which doubled revenue from RM32.3 million in Q3 FY21 to RM66.9 million in Q3 FY22.

The strong performance was also primarily driven by the demand from the semiconductor and electrical and electronics (E & E&E) industries.

The pharmaceutical and healthcare businesses introduced early this financial year also contributed to the overall improvement.

The segment reported revenue and profit before tax (PBT) of RM27.0 million and RM2.9 million, respectively, in Q3 FY22.

For the nine-month (9M) period, Kobay recorded revenue of RM259.0 million, reflecting a 135.2 per cent YoY increase.

Accordingly, net profit was up by 115.6 per cent YoY from RM18.2 million in 9M FY21 to RM39.3 million in 9M FY22.

Chief executive officer and managing director Datuk Seri Koay Hean Eng said that with one more quarter to go, the company is on track for a remarkable breakthrough in FY22.

"Moving forward, we continue to be upbeat about the positive trajectory of the KTB with catalysts stemming from organic growth and new ventures.

"Our new factory for the production of aluminium frames for solar panels is on the verge of completion. We expect production to begin by the end of the fourth quarter (Q4) FY22.

"Additionally, we are also venturing into electronics manufacturing services (EMS) with the installation of surface-mount technology (SMT) lines to meet our customers' needs.

"We expect business activities to commence in a few months," Koay said.

On a quarter-on-quarter (QoQ) basis, KTB revenue rose by 7.8 per cent from RM92.8 million in the second quarter (Q2) FY22 to RM100.1 million in Q3 FY22, while net profit increased by 4.1 per cent from RM14.5 million to RM15.1 million.

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