Managing director Lim Kon Lian (pic) said the medical and healthcare sector was expected to witness a sustained activity due to the demand for medical resources to combat the Covid -19 pandemic.

BANGI: Medical and healthcare equipment provider LKL International Bhd (LKL) aims to sustain its double-digit revenue growth for the financial year ending April 30,2021 (FY21) by leveraging on its expanded product mix. Managing director Lim Kon Lian (pic) said the medical and healthcare sector was
expected to witness a sustained activity due to the demand for medical resources to combat the Covid-19 pandemic. “During the pandemic, we grew our business by supplying medical devices, gloves and other personal protective equipment.

“We have bagged contracts from China, Maldives, Bangladesh and a few African countries, ” he told reporters after the company’s extraordinary general meeting (EGM) here yesterday. In FY20, LKL’s revenue grew 47.8% to RM54.95mil. It swung to a net profit of RM4.30mil from a net loss of RM2.5mil in the preceding year. Meanwhile, during the EGM, LKL obtained shareholders’ approval to undertake a private placement and an employees share option scheme. The private placement, proposed on July 17,2020, entails the issuance of up to 85.8 million placement shares amounting to not more than 20% of the shares issued at an indicative price of RM1.10 per share. Lim said the company projected to raise RM94.3mil, with RM26.5mil to be allocated for expansion and capital expenditure.

On its expansion plans, he said RM13mil would be used to purchase and set up two units of adjoining new factory buildings to be used for the manufacture and assembly of medical/healthcare beds, peripherals and accessories, production office, warehouse, and finished products.

“The group will also invest RM9.5mil of the proceeds to build a three-storey steel structure extension across existing factory buildings and install a conveyor belt to automate powder coating. “Another RM4mil is needed to purchase machinery, ” Lim said. The pandemic, he added, saw greater demand for medical beds from hospitals and medical centres with LKL receiving orders for more than 750 beds to be delivered over the next 14 months. “The expansion enables us to increase capacity from 5,000 beds per annum to about 6,500 beds.The about 30% increase is expected to be recognised in the FY22 revenue, ” he said. – Bernama