LKL International Bhd’s wholly-owned subsidiary LKL Advance Metaltech Sdn Bhd (LKLAM) was awarded a RM6.56 mil contract for the procurement of personal protective equipment by the Sarawak government on March 24.
In a Bursa Malaysia filing on March 25, it said the contract is not expected to have a material effect on the net assets and gearing and its subsidiaries but is expected to contribute positively to the earnings for its financial year ending April 30, 2020.
However, the hospital-bed maker said the risks mainly relate to matters pertaining to the delivery of products to the customer, which are considered normal operational risks.
LKL International CEO Lim Kon Lian and his family members control some 71% of the company, which was listed in 2016 at 20 sen a share.
LKLAM manufactures all kinds of hospital beds, such as electrical, hydraulic, fixed height, mechanical and delivery beds. It also makes transport trolleys, medication carts, medical chairs and hospital room furniture, instrument trolleys, nursery equipment and examination tables.
In addition, it produces wound dressing and medical wound care products under its house brand Dynafix.
LKL’s customers from the private sector include leading hospitals under the IHH Healthcare group, KPJ Healthcare group and Columbia Asia group, while some of the public hospitals that have used LKL products include Hospital Putrajaya and Hospital Serdang.
Last year, the group secured two contracts worth RM11 mil to supply medical beds and equipment to Selgate Rawang Hospital and a teaching hospital and medical academic centre in Jeram, Selangor. Selgate is a wholly-owned subsidiary of Selangor State Development Corp (PKNS).
The group reported a net profit of RM557,000 in the first half of FY2020, more than triple the RM141,000 a year ago, while revenue grew by 16% to RM20.02 mil.
LKL International’s share price at 12.30pm closed 26.92% higher at 16 sen, giving it a market capitalisation of RM70.75 mil. – March 25, 2020
