KUALA LUMPUR (Nov 5): Kobay Technology Bhd (KL:KOBAY) reported a 73% rise in first-quarter earnings to a new record thanks to stronger contributions from its manufacturing divisions.
Net profit for the three months ended Sept 30, 2026 (1QFY2027) rose to RM18.66 million, from RM10.77 million a year earlier, according to the precision parts manufacturer’s filing with Bursa Malaysia on Thursday.
Revenue for the quarter rose 17% to RM130.24 million from RM110.88 million a year earlier.
No dividends were declared for the quarter under review.
As at end-September, the company has cash and cash equivalents of RM60.7 million against RM118.8 million in loans and borrowings.
The manufacturing segment, which contributed nearly 74% of total revenue, grew 34% from the previous year and accounted for almost 89% of the company's total segment profit before tax.
Meanwhile, the remaining segments — property development, pharmaceutical and healthcare, and asset management and investment holding — all experienced a drop in revenue, though lower costs and rental income helped pre-tax profits for the property and pharmaceutical divisions.
The group said it is positive on the outlook of its semiconductor manufacturing business, supported by a healthy pipeline of orders and rising customer demand.
For the property development segment, Kobay plans to time new launches to match market conditions and buyer sentiment amid geopolitical uncertainties.
“Acknowledging the rising costs of building materials and higher borrowing expenses, management is committed to closely monitoring and refining our risk management strategies,” it noted.
Meanwhile, Kobay expects steady demand within the pharmaceutical and healthcare products division, driven by rising health awareness and a stronger focus on preventive care.
To navigate potential challenges from higher living costs, the group plans this division to broaden its product range, explore overseas markets and maintain strict cost control measures.
At Thursday's market close, Kobay shares settled at eight sen or 3.2% lower at RM2.42, giving the company a market capitalisation of RM789.4 million.
The counter has risen over 66% over the past one year.