KUALA LUMPUR (Jan 18): JF Technology Bhd (KL:JFTECH) co-founder and managing director Datuk Foong Wei Kuong, who became the second-largest shareholder of Cosmos Technology International Bhd (KL:COSMOS) on Wednesday, said he intends to tap into the growing opportunities within Malaysia's water infrastructure sector.
“I raised my investment in Cosmos because the company is well positioned to benefit from the growing demand for water infrastructure, driven by strong investments in foreign direct investments, data centres, smart metering and non-revenue water programmes,” he told The Edge on Saturday.
Additionally, said Foong, water tariff hikes will generate more funds to upgrade and enhance water projects.
In a filing with Bursa Malaysia on Friday, Cosmos revealed that Foong had increased his direct stake in the ACE Market-listed integrated water technology solutions provider from 12.35% to 17.95%, after acquiring 14.36 million shares or a 5.6% stake from Singaporean firm MSM International Ltd on Wednesday.
Foong, who started JF Tech in his kitchen as a manufacturer and trader of electronic components, is now the second-largest shareholder of Cosmos, behind Datuk Chong Toh Wee, the company’s managing director, who holds a 38.87% stake.
According to Foong, this strategic move comes at an opportune time, coinciding with the Water Sector Transformation 2040 (WST 2040) initiative to boost Malaysia’s gross domestic product and water sector growth.
“More importantly, apart from the exciting growth prospects of Cosmos, I am investing in Datuk Chong's exceptional business acumen.
"He is an industry veteran with vast experience and extensive knowledge as a water solutions provider, with a proven track record underscored by his consistent success as a winner of Siemens' top distributor for many years,” Foong elaborated.
Foong first emerged as a substantial shareholder of Cosmos after acquiring 13.946 million shares on Dec 16 last year. He then acquired another 7.6 million shares on Dec 17.
Bloomberg data suggested that he bought the two blocks of shares at a price of 39.4 sen apiece or RM8.49 million.
Cosmos is mainly involved in the distribution and instrumentation services of fluid control products and manufacturing of fabricated metal products for industrial application used in the water, wastewater, as well as oil and gas industries.
Notably, the group has been working with Germany-based Siemens as a solution partner to distribute and service the company’s electronic flow meters for the commercial sector.
Its financials have rebounded in the latest quarter, after a downtrend that lasted six quarters since its transfer to the ACE Market from the LEAP Market in 2022.
For the six months ended Oct 31, 2024 (1HFY2025), Cosmos' net profit rose 23.9% to RM1.33 million, from RM1.07 million a year ago, while revenue rose 19.49% to RM9.33 million, from RM7.81 million, thanks to completion of previously delayed projects, a bourse filing showed.
Shares of Cosmos closed 1.5 sen or 3.8% lower at 38.5 sen at Friday’s closing, giving it a market capitalisation of RM98.75 million.