KUALA LUMPUR (Feb 19): Precision parts manufacturer Kobay Technology Bhd (KL:KOBAY)’s net profit rose 35.4% to RM4.16 million in the second quarter ended Dec 31, 2024 (2QFY2025), from RM3.07 million a year ago, on higher other income and lower tax expense, but was partly dragged by operating expenses, which rose 98% year-on-year.

Other income nearly quadrupled to RM2.76 million in 2QFY2025, from RM748,000 a year ago, while tax expenses were 28.3% lower at RM1.95 million, from RM2.72 million.

Its operating expenses nearly doubled to RM19.4 million from RM9.82 million previously.

Earnings per share stood at 1.3 sen in 2QFY2025, compared to 0.96 sen in 2QFY2024, the group’s bourse filing showed.  

Quarterly revenue grew by 7.56% to RM83.09 million, from RM77.25 million in the corresponding quarter, helped by improved top-line contributions from its manufacturing as well as asset and investment management segments.

No dividends were declared during the quarter under review.

For first half of FY2025, its net profit more than doubled to RM9.47 million, from RM4.6 million, on the back of 17.26% higher revenue of RM175.91 million compared to RM150.01 million previously.

Moving forward, the group anticipates a gradual improvement in its manufacturing division, with sales orders expected to show a modest increase in FY2025. Kobay expects its overall performance to remain stable, with signs of slight improvement on a year-over-year basis.

The recovery is expected to be supported by stable demand in key markets and ongoing efforts to strengthen operational efficiency, it said.

“In addition to maintaining a strong presence in the E&E (electrical and electronics) industry, the division is strategically positioning itself for expansion into the electronics manufacturing services (EMS) sector, tapping into new opportunities for growth,” it added.

The group also maintains a positive outlook for its property development division's performance in FY2025, supported by infrastructure developments, government initiatives and a resurgence in tourism, which is likely to strengthen the property markets in both Langkawi and Penang Island.

For its pharmaceutical and healthcare segment, the group said inflationary pressures and higher living costs may impact consumer spending.

Kobay shares closed up one sen or 0.8% at RM1.35 on Wednesday, bringing the group a market capitalisation of RM440 million. The stock has fallen 46% compared to its recent peak of RM2.49 in May last year.