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The Edge Markets – LKL Says Unable To Disclose Identity Of China-based Glove Client Due To ‘Confidentiality And Sensitivity’

KUALA LUMPUR (Sept 7): LKL International Bhd, which has received a query from Bursa Malaysia in relation to the supply of nitrile gloves to a China-based customer, said that it cannot disclose the name of the client due to “confidentiality and sensitivity”. In a filing with Bursa Malaysia, the hospital bed maker said the gloves will be supplied to a China-based company which is acting as a distributor. The customer has ventured into the supply of the personal protective equipment to help overcome the shortages in the supply of such items and for the protection of key personnel across the globe in the wake of the Covid-19 pandemic, it added. In addition, LKL said the customer has also turned down its request to disclose the total amount of gloves it is purchasing, on the basis that the market for gloves is “highly competitive and price sensitive”. “By quantification of the number of nitrile gloves to be supplied by LKL Advance Metaltech Sdn Bhd (LKLAM) to the customer under the sales contract, the company will reveal the customer’s highly confidential information to its competitors in the gloves market which may give rise to non-renewal of contract and/or other issues,” LKL added. Nonetheless, LKL said the sales contract, which commenced on Sept 1, is expected to be completed by Feb 28, 2021. To recap, LKL’s wholly-owned subsidiary LKLAM bagged a nitrile glove contract worth US$18.96 million or RM78.49 million on Sept 1. The contract is expected to contribute positively to its financial year ending April 30, 2021 (FY21). LKLAM is involved in the provision of medical and healthcare beds, peripheral items and accessories.

For its FY20, LKL reported a net profit of RM4.35 million from a net loss of RM2.5 million a year ago, thanks to higher revenue from greater demand for its medical and healthcare beds, medical peripherals and accessories and medical devices. Annual revenue jumped nearly 48% to RM54.95 million from RM37.18 million posted for FY19. The counter closed down five sen or 4.9% at 97 sen, giving it a market capitalisation of RM415.94 million. Some 10.68 million shares were traded. Year-to-date, the counter jumped almost seven times from 14 sen on Jan 2.

September 7, 2020

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