KPower secures RM48.64m airbag and COVID-19 test kits contract

RENEWABLE energy-based KPower Bhd (formerly Kumpulan Powernet Bhd) has solidified its foothold in the healthcare and technologies segment by clinching a contract to supply airbag/breathing bag for GeNose and GeNose COVID-19 test kits to an Indonesian client.

Valued at about RM48.64 mil, the deal struck by the company’s wholly-owned subsidiary KPower Healthcare & Technologies Sdn Bhd is effective for a 12-month period from the acceptance date and shall be governed under the Indonesian laws.

Under the contract, PT BMS will submit a written request for the supply of the airbag and GeNose COVID-19 kits by way of purchase order which will then be delivered by KPHealthTech to PT BMS’ warehouse located in Bekasi, Indonesia.

PT BMS will then be obligated to render payment within 40 days from the arrival date of the airbag and GeNose COVID-19 kits at the warehouse.

“This contract further enhances our role in combatting the COVID-19 pandemic while growing our healthcare segment in one of the most populous countries in the world,” KPower’s group managing director Mustakim Mat Nun pointed out.

“Including this new contract, we have clinched over RM70 mil worth of contracts in the healthcare segment under KPHealthTech in Indonesia to date.”

With its 70% acquisition in Granulab (M) Sdn Bhd early last month, KPower has built an in-house technical knowledge as well as the license to manufacture and distribute medical devices in Malaysia and various international certifications, according to Mustakim.

Sirim Tech Venture Sdn Bhd, a subsidiary of SIRIM Bhd, owns the balance 30% stake in Granulab.

“As healthcare is a serious business with long-term prospects, we have been careful in strategising the right structure to support this business,” he justified.

“Combined with our network and resources, we believe that our venture into this segment will be a worthwhile endeavour.”

The latest contract comes on the back of the group’s maiden foray into the healthcare and technology business following Granulab’s acquisition and the RM24 mil contract to distribute the PCR Reagent Kit for COVID-19 in Indonesia in January 2021.

At the close of the morning trading session, KPower was down 2 sen or 0.85% at RM2.32 with 6.49 million shares traded, thus valuing the company at RM1.05 bil. – Feb 16, 2021


Photo credit: PT VOI Media

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