KUALA LUMPUR (Feb 10): Kobay Technology Bhd was among the top losers on Bursa Malaysia, shedding as much as 21 sen or 7.24% per share in morning trade, after it reported a lower net profit for the second quarter ended Dec 31, 2022 (2QFY2023).
The stock gapped down, opening at RM2.90, 17 sen or 5.53% below its closing price of RM3.07 on Thursday (Feb 9).
At 9.27am, the stock had pared some losses to settle 20 sen or 6.51% lower at RM2.87, with 893,100 shares traded.
On Thursday, the diversified group reported that its 2QFY2023 net profit tumbled 37.8% to RM9.03 million against RM14.52 million a year ago, due to a slowdown in the semiconductor market.
Similarly, quarterly revenue also decreased 11.5% to RM82.15 million from RM92.83 million previously.
For the first half ended Dec 31, 2022, net profit decreased 19.4% to RM19.55 million from RM24.24 million a year ago, with revenue improving 7.9% to RM171.59 million from RM158.97 million.
In a research note on Friday, Hong Leong Investment Bank analyst Tan J Young cut his estimates of manufacturing sales contributions, leading to lower earnings per share (EPS) for Kobay — by 20% for FY2023, 22% for FY2024, and 23% for FY2025.
"We reiterate 'buy' with a lower target price of RM4. Due to its diverse business structure, we value Kobay with a sum-of-parts valuation methodology. Its manufacturing division is pegged at 25 times FY2023 EPS, while its property development business is valued using FY2021 net book value, and its pharmaceutical business is appraised based on 20 times FY2023 EPS."