Posted by laulau > 2024-06-02 08:04 | Report Abuse

(Weekend Reading)
Apart from diversification into Healthcare Business, Kobay Technology benefits from Semiconductor, E&E demand surge due to US Planned Tariff increase to 50% from 25% for China made E&E products imported into US Market.
Kobay will start electronic manufacturing system (EMS) and solar panels soon. Kobay is ready to manufacture aluminium frames for solar panels as the renovation and installation of its new 15-acre plant dedicated to renewable energy-related business had completed.

Kobay will be a beneficiary of US's tariff increase from 25% to 50% on China made solar cells modules/aluminium frames, as according to a White House statement: The tariff rate on solar cells (whether or not assembled into modules) will increase from 25% to 50% in 2024. The tariff increase will protect against China's policy-driven overcapacity that depresses prices and inhibits the development of solar capacity outside of China like Malaysia (Kobay)
*Note: US to Hike Tariffs on China Imports:
Steel and aluminium: The tariff rate on certain steel and aluminum products under Section 301 will increase from 0-7.5% to 25% in 2024.
Semiconductors: The tariff rate on semiconductors will increase from 25% to 50% by 2025.
https://www.fastmarkets.com/insights/biden-hikes-tariffs-on-chinese-imports-steel-aluminium-electric-vehicles-among-sectors-targeted/#:~:text=Semiconductors%3A%20The%20tariff%20rate%20on,%25%20to%20100%25%20in%20202

Posted by laulau > 2024-06-02 08:06 | Report Abuse

According to RHB Retail Research, Kobay Technology is poised for a technical breakout after rebounding off the 21-day SMA line and closing at the immediate resistance of MYR2.26 last week.

RHB Retail Research in a note on May 31 said, if a breakout happens above that mark, the counter will trend higher towards the 52-week high of MYR2.58, followed by MYR3 level.

Update on Hong Leong Research Analysis.
"Kobay Technology
Staying agile"
#For the solar segment, the delay from authorities’ approvals has been rectified and the factory is now successfully connected to the electric power after the substation upgrade by TNB.
#Ccontribution from EMS will increase, Kobay’s main aim is to utilize the readily available SMT and achieve breakeven. With US's planned tariff increase to 50% on China made E&E products, Kobay's EMS & SMT plant utilisation will increase accordingly as overseas customers will outsource more contract manufacturing to Kobay for E&E products that requires EMS & SMT.
#As for Advance Data Server(ADS), Kobay management mentioned that demand will kick in stronger once bitcoin price recovers to the level of USD26k-27k. (Note: Bitcoin is now trading at USD67k as of 1 June, 2024)

#Property development and pharmaceutical are expected to continue delivering positive performances.
#Hong Leong Research BUY call with TP of RM4.00.

Recap.
#Kobay has been making profit for 3 consecutive Qtrs., with Profit of RM5.84M on a Turnover of RM87.79M for Qtr. 3.
#Earnings vs Savings Rate: KOBAY's forecast earnings growth (60.4% per year) is above the savings rate (3.6%).
#Earnings vs Market: 
KOBAY's earnings (60.4% per year) are forecast to grow faster than the MY market (12.1% per year).
#High Growth Earnings: 
KOBAY's earnings are expected to grow significantly over the next 3 years.
#The 2 new projects, namely EMS and solar frame should be operational and generating income from next quarter onwards.
#There is a relatively healthy outlooks for aerospace and O&G divisions.
#Solar segment. The group is ready for its venture into the manufacturing of aluminium frames for solar panels for renewable energy-related business. #Kobay has already completed the renovation and installation of the new 15 -acre plant dedicated for renewable energy-related business. The prior delay from authorities’ approvals has been rectified and the factory is now successfully connected to the electric power after the substation upgrade by TNB. The anodizing line has been set up and currently the factory is ready to run for production.
#EMS. Recall that Kobay invested RM20m in Innospec, a new SMT services subsidiary, to provide end-to-end complete solution for ADS. Kobay has already been qualified by customers in 2QFY23 and is currently awaiting orders to be released to kick start production. At this juncture, the group just secured 2 customers with revenue guidance of about RM1m monthly. Despite the minimal contribution Kobay’s main aim is to utilize the readily available SMT line and achieve breakeven.
#Advance data server. Demand has improved as bitcoin price has more than doubled from breakeven price of USD27k to 67k as of June 2024.
#Property and pharmaceutical. Property development is expected to deliver positive performance on the back of the completion of its maiden Langkawi project. #Pharmaceutical shall continue to work on widening its product range, along with cost control efforts to improve profitability and market competitiveness. The division is looking to expand its business in nutrition/supplement that could garner higher margin.

Posted by laulau > 2024-06-04 09:07 | Report Abuse

Recommendation:
Kobay shares are tightly held by substantial shareholders. Since weak holders and retailers already flushed out and most substantial shareholder's holding cost is RM4 or above? not many are willing to sell at current price. Operators will go for the lower hanging fruit of RM3 before next TP4~4.50. The next run-up will be fast & furious! Accumulate on any weakness and we wait for the Breakout to the next wave of buy by market & Foreign Funds such as Dimensional Fund etc.
https://theedgemalaysia.com/node/713761

Posted by pang72 > 2024-06-04 12:23 | Report Abuse

Bro James, hv you finish selling KOBAY?
Market correction is coming..
FYI...

Posted by opportunist88 > 2024-06-04 14:28 | Report Abuse

laulau says will skyhi


pang72
Bro James, hv you finish selling KOBAY?
Market correction is coming..
FYI...

2 hours ago

Posted by opportunist88 > 2024-06-04 14:54 | Report Abuse

seems getting cheaperer

Posted by limitup4u > 2024-06-04 15:25 | Report Abuse

Foreign fund is coming but not coming to Kobay.. 🤔🤔

Posted by laulau > 2024-06-04 15:31 | Report Abuse

Dimensional Fund already started accumulating Kobay since 31 March 2024. Very sure other foreign funds are also buying hence the first Lu! Accumulate before cheap scripts which are limited are exhausted?

Dimensional Fund Advisors LP
0.2%
Shares 633,322
Value RM1.4m
Change % 2.5%
Portfolio % 0%
Last Reported 31 Mar 24

Posted by pang72 > 2024-06-05 13:53 | Report Abuse

Bro. James,
Hv you finish selling KOBAY?

Posted by pang72 > 2024-06-05 13:54 | Report Abuse

I am start selling fyi

Posted by limitup4u > 2024-06-05 16:59 | Report Abuse

Pang72

I thought you have sold all?

Laulau

Promoting iris in Kobay counter? No more supporting Kobay ah?

Posted by gooman > 2024-06-06 09:44 | Report Abuse

PHLX Semiconductor (^SOX) was up 4.52 percent yesterday..

Posted by opportunist88 > 2024-06-06 10:08 | Report Abuse

but dont see mass selling sign

pang72
I am start selling fyi
20 hours ago

Posted by pang72 > 2024-06-06 10:35 | Report Abuse

KOBAY rebound is due..
Patience wait for bro James pushing up

Posted by nasgee > 2024-06-06 10:38 | Report Abuse

LU soon fasetrrr get seattt...vroommm

Posted by nasgee > 2024-06-06 10:39 | Report Abuse

bro james kemonnn..

Posted by opportunist88 > 2024-06-06 10:51 | Report Abuse

Tensile up already where got chance rebound in short

Ukraine 'fires first US missile into Russia
Ukraine last night claimed it successfully hit a missile system inside Russia using U.S. weapons.

It said the country’s forces destroyed Russian missile launchers with a strike in the Belgorod region.

Senior politician Yehor Chernev claimed Ukrainian forces used a High Mobility Rocket Artillery System, or HIMARS, The New York Times reported.

Posted by opportunist88 > 2024-06-06 14:39 | Report Abuse

ST. PETERSBURG, Russia (AP) — President Vladimir Putin warned Wednesday that Russia could provide long-range weapons to others to strike Western targets in response to NATO allies allowing Ukraine to use their arms to attack Russian territory.
Putin also reaffirmed Moscow’s readiness to use nuclear weapons if it sees a threat to its sovereignty.

Posted by JustinX78 > 2024-06-06 15:10 | Report Abuse

US-sanctioned company not a semiconductor manufacturer, says Miti

https://www.thestar.com.my/business/business-news/2024/06/05/us-sanctioned-company-not-a-chips-manufacturer-doesn039t-hold-export-permits-says-miti

Posted by limitup4u > 2024-06-06 16:34 | Report Abuse

Another day of gap up and press down.. 🤷🏻‍♂️🤷🏻‍♂️

Posted by gooman > 2024-06-06 21:23 | Report Abuse

European Central Bank cuts main interest rate by 0.25 points
ECB reduces rate to 3.75% across eurozone, putting it ahead of US Federal Reserve and Bank of England

Posted by gooman > 2024-06-06 21:59 | Report Abuse

Malaysia's property market to be stable in 2024 with sustained growth over next 3 years - Nga - https://www.thestar.com.my/business/business-news/2024/06/06/malaysia039s-property-market-to-be-stable-in-2024-with-sustained-growth-over-next-3-years---nga

Posted by 8u29song > 2024-06-07 10:53 | Report Abuse

steady.....I m ready..........

Posted by nasgee > 2024-06-07 11:17 | Report Abuse

kemonnn kobayyy..

Posted by 8u29song > 2024-06-07 11:21 | Report Abuse

yes....210 done....

Posted by laulau > 2024-06-07 11:45 | Report Abuse

Bursa now very bullish & Foreign Funds are here. If operators are willing to sell cheap just accumulate on weakness. The benefit outweighs the risk since retail only holds 20%, balance are held by substantial shareholders including Institutions, EPF & KWAP will support Govt's RE initiatives as mentioned above.
Recap.
#Kobay has been making profit for 3 consecutive Qtrs., with Profit of RM5.84M on a Turnover of RM87.79M for Qtr. 3.
#Earnings vs Savings Rate: KOBAY's forecast earnings growth (60.4% per year) is above the savings rate (3.6%).
#Earnings vs Market:
KOBAY's earnings (60.4% per year) are forecast to grow faster than the MY market (12.1% per year).
#High Growth Earnings:
KOBAY's earnings are expected to grow significantly over the next 3 years.
#The 2 new projects, namely EMS and solar frame should be operational and generating income from next quarter onwards.
#There is a relatively healthy outlooks for aerospace and O&G divisions.
#Solar segment. The group is ready for its venture into the manufacturing of aluminium frames for solar panels for renewable energy-related business. #Kobay has already completed the renovation and installation of the new 15 -acre plant dedicated for renewable energy-related business. The prior delay from authorities’ approvals has been rectified and the factory is now successfully connected to the electric power after the substation upgrade by TNB. The anodizing line has been set up and currently the factory is ready to run for production.
#EMS. Recall that Kobay invested RM20m in Innospec, a new SMT services subsidiary, to provide end-to-end complete solution for ADS. Kobay has already been qualified by customers in 2QFY23 and is currently awaiting orders to be released to kick start production. At this juncture, the group just secured 2 customers with revenue guidance of about RM1m monthly. Despite the minimal contribution Kobay’s main aim is to utilize the readily available SMT line and achieve breakeven.
#Advance data server. Demand has improved as bitcoin price has more than doubled from breakeven price of USD27k to 67k as of June 2024.
#Property and pharmaceutical. Property development is expected to deliver positive performance on the back of the completion of its maiden Langkawi project.
#Pharmaceutical shall continue to work on widening its product range, along with cost control efforts to improve profitability and market competitiveness. The division is looking to expand its business in nutrition/supplement that could garner higher margin.

Posted by 8u29song > 2024-06-07 14:40 | Report Abuse

be patient....

Posted by 8u29song > 2024-06-07 16:30 | Report Abuse

steady....phew...

Posted by nasgee > 2024-06-07 16:32 | Report Abuse

monday LU...vrommm

Posted by gooman > 2024-06-07 20:23 | Report Abuse

TSMC’s May Sales Rise 30% as Countries Race to Secure AI Chips

AI is driving a global boom in data center construction
TSMC is the biggest chipmaker to both Apple and Nvidia
https://www.bloomberg.com/news/articles/2024-06-07/tsmc-s-may-sales-rise-30-as-countries-race-to-secure-ai-chips

Posted by gooman > 2024-06-07 20:27 | Report Abuse

https://www.bloomberg.com/news/articles/2024-06-07/china-s-may-exports-surge-7-6-in-boost-for-economy

Posted by sinojab > 2024-06-09 22:08 | Report Abuse

Share price follow diesel up 50%

Posted by 8u29song > 2024-06-10 11:55 | Report Abuse

steady.

Posted by paperhand123 > 2024-06-10 15:01 | Report Abuse

where is the technical breakout my lift like jammed already lol

Posted by opportunist88 > 2024-06-10 16:03 | Report Abuse

Seems no one push up for me sell

Posted by opportunist88 > 2024-06-10 16:04 | Report Abuse

where is the 3.00

Posted by limitup4u > 2024-06-10 17:12 | Report Abuse

HAHA, no parts to repair the lift.. stay for awhile more at the penthouse

Posted by paperhand123 > 2024-06-10 23:21 | Report Abuse

ya guess so, till the next QR or hopefully before....

Posted by nasgee > 2024-06-11 09:15 | Report Abuse

get setttt goooo..vroommm...faterrrr

Posted by pang72 > 2024-06-11 14:07 | Report Abuse

Bro James, hv you finish selling KOBAY?

Posted by 754232 > 2024-06-12 09:59 | Report Abuse

maybe trap

Posted by pang72 > 2024-06-12 11:01 | Report Abuse

Another great rebound stock is KOBAY after bro James heavy selling..

Let's go $3

Posted by paperhand123 > 2024-06-12 11:03 | Report Abuse

ok laulau i'm with you lets go level 3 📈📈📈

Posted by limitup4u > 2024-06-12 15:13 | Report Abuse

here it come again

Posted by 8u29song > 2024-06-12 22:41 | Report Abuse

terrible......hope that bad thing is over....

Posted by 8u29song > 2024-06-13 20:56 | Report Abuse

tomorrow another show...

Posted by JustinX78 > 2024-06-14 14:54 | Report Abuse

Momentum slows down due to Haji Holiday 😁

Posted by limitup4u > 2024-06-24 17:26 | Report Abuse

You are really a hardcore promoter for this counter. 🫡🫡

Posted by curiousq > 2024-06-25 20:56 | Report Abuse

How is the prospect of this counter? I saw the profit margin was lower and lower over the years ..... although revenue increased but profit dropped a lot 😥

Posted by nasgee > 2024-06-26 08:11 | Report Abuse

flyyyy kobayy..to japan...vroomm