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Overview
Financial Highlight
Headlines
Business Background Kobay Technology Bhd is an investment holding company. Through its subsidiaries, it engages in manufacturing of precision metal components. The operating segments of the company are Precision metal components which include manufacture of precision machined components, precision stamping, sheet metal parts and surface treatment, Precision tooling and equipment which includes manufacture of precision moulds, tooling and dies, and other related parts, Metal fabrication which includes manufacture of metal works and structures, modules and parts, and Property development which relates to the property development activities. The company operates in Malaysia, Singapore, USA, and other foreign countries. It derives the majority of the revenue from the Precision metal components segment.
  tecpower China has delivered a written response to US demands for wide-ranging trade reforms in a move that could trigger negotiations to bring an end to a withering trade war between the world's top economies. . Hong Kong Stocks gain on China-U.S. trade hopes, Tencent upbeat earnings https://www.business-standard.com/article/news-cm/hong-kong-stocks-gain-on-china-u-s-trade-hopes-tencent-upbeat-earnings-118111500629_1.html 15/11/2018 9:23 PM King7 aerospace technology in Budget 2020. Next Malaysia agenda in Malaysia Baru (technology) 20/09/2019 10:34 AM  Icon8888 Latest Q precision engineering business profit grew by quite a lot If not because of one off property development losses caused by modification of development plan, overall profit will be very strong 04/12/2019 4:16 PM blackchicken https://au.news.yahoo.com/china-buy-more-us-cars-planes-energy-053651501--spt.html China to raise U.S. car, aircraft, energy purchases in trade deal--source 15/01/2020 7:38 AM blackchicken https://www.flightglobal.com/us-china-trade-pact-likely-a-boon-for-boeing/136166.article 16/01/2020 3:11 PM value88 Finally managed to buy some today. I have queue to buy for many days and today is the day I become the shareholder of Kobay. Its aerospace, O&G segments have been doing well in 2019 and will continue to do well in 2020. Its semiconductor segment didn't do well in 2019 but will do well in 2020 due to recovery of semiconductor industry. With all the 3 manufacturing segments having growth prospect, Kobay is almost certain to perform better YoY in 2020. As for its property segment, the contribution % is much less than manufacturing segment, so if it does not make loss in 2020 is good enough for me. 31/01/2020 6:01 PM value88 I just noticed the total volume of 4.8k shares transacted today are all acquired by me. It's like Kobay open for trading today is solely for my sake, haha. Anyway, I have accumulated almost enough. Wait and hope for better quarterly result b4 end Feb. 07/02/2020 5:11 PM value88 It is reasonable to compare Kobay with FoundPac and UWC because they belong to the same industry, i.e. precision components, tooling and metal fabrication. Both FoundPac and UWC are selling at 30x-40x PE multiple now, and Kobay is a much cheaper option as it is selling at merely 10x PE multiple. The question is will market give Kobay higher PE multiple, just like they gave to UWC and FoundPac ? If market does recognise Kobay is a much cheaper option for precision parts industry one day, Kobay's stock price will surge. 08/02/2020 10:03 AM value88 But of course the condition is Kobay must show growth in its revenue and earnings just like UWC and FoundPac did. I believe Kobay can achieve that in FY2020 riding on the recovery of semiconductor industry. 08/02/2020 10:05 AM blackchicken https://www.nst.com.my/news/nation/2020/02/564524/japan-offers-malaysia-new-frontier-space-exploration TOKYO: Japan is ready to take Malaysia to a new frontier in space exploration and technology, via collaborative initiatives. Japan Aerospace Exploration Agency (JAXA) international relations and research department director Yoshikazu Shoji said Malaysia already has a head start by having its first astronaut flown to the International Space Station (ISS); its involvement in the Malaysia East Asia Satellite (Measat) and micro-satellite programme; and aviation and aerospace industries. "With Malaysia's experience in these sectors and the decades-old strong bilateral relationship between both countries, I reckon Malaysia can forge ahead in space science and beyond. 12/02/2020 11:26 AM Icon8888 Strong earning, right industry (Semicon), Low PE, Low liquidity Powder keg for Big Bang in share price 18/02/2020 8:30 AM value88 Fantastic earnings. In fact, last quarter would have shown similarly good earnings result if not dragged down by its property segment's one-off loss. 26/02/2020 6:14 PM value88 I suppose year 2020 will be a better year for Kobay as semiconductor industry will perform better in 2020 than 2019, with the exception in Q1'20 which may be dragged down by Covid-19 epidemic. Kobay's result is a stream in the desert, after portfolio being beaten down by black swans in past 2 months. 26/02/2020 6:17 PM value88 My calculation shows the min fair value is RM2.59 per share, and that is the minimum fair value. The higher fair value would depend on what PE multiple the market is willing to give to Kobay. Kobay is in the same industry, i.e. precision component, tooling and metal fabrication, as UWC and FPGroup. If one looks at their PE multiple and compare with Kobay's, u can see how much Kobay can go up in stock price if it can get PE multiple closer to its peers. 26/02/2020 10:28 PM Mkfarmer Kobay have lower PE multiple probably because of lower ROE. Almost all profit are coming from manufacturing, but big part of equities are for the property development. If exclude property development section, the ROE is actuary quite high. For me, the assets in property development form a layer of safety for Kobay, but some investors view it otherwise. 27/02/2020 12:27 AM Icon8888 You lack independent thinking and self confidence You are assuming market is correct all the time You are assuming that market is consciously pricing kobay at such Low level Market misprices kobay, and you try to justify for it as though market is right The correct thing to do is to lead the market by promoting and explaining to the unawared investors When kobay goes to RM3.00, your “Low ROE hence deserves Low valuation” theory will look silly and lack of self confidence and vision 27/02/2020 7:24 AM Mkfarmer Promoting a stock can only push up the price temporarily. Investors are smarter than you. May be you want to sell it now? Another reason for the low PE is because of low dividend. 3 cents only out of 18 cents profit. Really kiam siap. 27/02/2020 9:25 AM cefiro22 ...dont understand ..it opened at 2.00 , then q at 1.86 x 8lots n thown to me at 15.09...why? 27/02/2020 4:58 PM Mkfarmer Icon, if share price reached RM3.00, it will not disprove "Low ROE hence deserves Low valuation", because the latest quarter's ROE is quite high, 3.67%. If you want to argue, please argue with logic. 28/02/2020 8:50 PM Icon8888 One day you say Kobay Low ROE one day you say not Low ROE Which is which ? ____________ Mkfarmer Kobay have lower PE multiple probably because of lower ROE. Almost all profit are coming from manufacturing, but big part of equities are for the property development. If exclude property development section, the ROE is actuary quite high. For me, the assets in property development form a layer of safety for Kobay, but some investors view it otherwise. 27/02/2020 12:27 AM 28/02/2020 8:56 PM Mkfarmer I commented about the relationship between PE and ROE. When I made that comment, latest quarter's ROE just coming out, market has not yet respond to that ROE, there is no related PE to that ROE. So when I said "lower PE multiple probably because of lower ROE", of course I mean the past ROE and PE. I thought this is very obvious? 28/02/2020 9:54 PM Icon8888 https://klse.i3investor.com/blogs/icon8888/2020-03-05-story-h1484718675-_Icon_Kobay_Technology_Growing_From_Strength_To_Strength.jsp 05/03/2020 2:47 PM  |
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