KUALA LUMPUR (May 10): Kobay Technology Bhd has received an unusual market activity (UMA) query from Bursa Malaysia after its share price hit limit-up on Friday.

In a bourse filing, Bursa asked the precision parts manufacturer if any corporate development relating to its business and affairs had not been announced, or if there was any rumour, report or other possible explanation that may account for the trading activity.

Its share price gained as much as 57 sen or 29.5% to RM2.50 on Friday, before closing at RM2.40 — still up 47 sen or 24.35%. Year to date, the counter has surged 84.6%.

Trading volume jumped to 26 million shares, compared to its 30-day average trading volume of 1.22 million.

At its current price, Kobay is valued at RM782.83 million. No institutional analysts are covering the counter.

The substantial shareholders of the company are Kobay’s property division chief operating officer Koay Zee Ee — who owns a 33.4% stake in the company through Kobay Holdings Sdn Bhd — and Norinv Kapital Sdn Bhd, which owns an 18.4% stake.

In June 2021, Kobay received a UMA query after its share price hit limit-up following its proposal to acquire a 70% equity interest in Avelon Healthcare Sdn Bhd, Galaxy Healthcare Sdn Bhd, Avelon Arise Sdn Bhd, Arise Healthcare Sdn Bhd and Galaxis Pharma Sdn Bhd.

At the time, Kobay said it was unaware of any corporate development that could have contributed to the UMA.

As recently as last week, Kobay said it had completed an internal reorganisation to consolidate its pharmaceutical and healthcare division.

Pursuant to a share swap agreement, its 70%-owned subsidiary Avelon Healthcare Group Sdn Bhd owns the entire stake in the four companies — namely Avelon Healthcare, Galaxy Healthcare, Avelon Arise and Arise Healthcare. As for Galaxis Pharma, its operations have been consolidated into Avelon Healthcare.

Avelon Healthcare Group also owns a 70% stake in medical products distributor Medicwave (M) Sdn Bhd, which it acquired in March this year for RM15.12 million.

For the financial quarter ended on Dec 31, 2023 (2QFY2024), Kobay’s net profit fell 66% to RM3.07 million from RM9.03 million a year earlier, due to lower margin sales, subdued demand and elevated setup costs.

Revenue for the quarter slipped 6% year-on-year to RM77.25 million from RM82.15 million.