KUALA LUMPUR (May 15): Kobay Technology Bhd (KL: KOBAY) posted a 30.77% decline in net profit for the third quarter ended March 31, 2024 (3QFY2024) to RM5.48 million, from RM7.92 million a year earlier, dragged by lower contributions from property development after completing a project in Langkawi.

In a filing with the local bourse on Wednesday, the precision parts manufacturer also posted a 19.23% decline in revenue to RM87.79 million from RM73.63 million previously.

No dividends were declared for the quarter under review.

For the cumulative nine months (9MFY2024), net profit more than halved to RM10.08 million or 3.15 sen per share, from RM27.47 million or 8.58 sen per share a year earlier.

Revenue for 9MFY2024 slipped by 3% to RM237.80 million, compared with RM245.22 million a year earlier.

In a statement, Kobay said it is planning to expand its clients portfolio for its manufacturing business by entering into original equipment manufacturing (OEM) and high-level assembly services.

Managing director and chief executive officer Datuk Seri Koay Hean Eng expects a recovery in the manufacturing sector in the second half of this year.

“The group remains focused on broadening our portfolio by further establishing our presence in OEM and high level assembly services, in addition to maintaining our customer base in the electrical and electronics industry. At the same time, our operational efficiency enhancement and cost structure optimisation initiatives remain ongoing,” he said.

Koay also expects a positive outlook for the company's property development segment, underpinned by the prospect of increased tourist arrivals.

“Meanwhile, the construction of our affordable condominium project, Laguna Bay in the southwest district of Penang, has commenced, and sales are gradually picking up.

“The higher number of tourist arrivals in Langkawi certainly bodes well for the Langkawi property market, which in turn could potentially benefit us.

"While we are optimistic about long-term prospects of the group, we are also cognisant of the challenging market environment,” Koay said.

At the market close on Wednesday, shares in Kobay settled 13 sen or 5.7% lower at RM2.15 each, giving the company a market capitalisation of RM688.39 million.