KUALA LUMPUR: Kobay Technology Bhd is set to propel further in the financial year 2022 (FY22) with multiple growth engines in place, mainly banking on the new addition of the pharmaceutical and health products division following the acquisition of Avelon Group in July 2021.
Chief executive officer and managing director Datuk Seri Koay Hean Eng said the new business would contribute steadily to Kobay, underpinned by the cumulative profit guarantee of RM25.5 million in profit after tax for the next three years.
"On the horizon, we are completing the first phase of our solar panel frame manufacturing plant sometime in the first half of 2022.
"Last month, we had raised around RM110 million from the first tranche of our private placement exercise.
"Of the proceeds, RM60 million has been allocated for capital expenditure to set up the new plant," he said in a statement today.
He said the extension of the company's manufacturing product catalogue is poised to elevate earnings even further.
To recap, Kobay is currently constructing a new manufacturing plant dedicated to producing solar panel frames on a recently acquired piece of land in Perai, Penang.
The total land size amounts to approximately 15 acres.
The plant's first phase will have an annual capacity of 20,000 metric tonnes of products.
"Switching gear back to our existing businesses, we are confident that the manufacturing segment will remain strong going forward.
"The outlook for the semiconductor and electric and electronic (E&E) industries is attractive as ever with growth coming from the global transition to 5G technology that is currently taking place.
"Apart from that, orders from the aviation sector are recovering with the increase in air travelling activities recently," Koay said further.
All in all, he said Kobay is upbeat on the prospect in FY22 premised upon the new growth drivers and improvement from existing businesses.