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 said the medical and healthcare sector was expected to witness a sustained activity due to robust demand for medical resources to combat the COVID-19 pandemic.
"During the pandemic, we grew our business in the trading segment 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 today.
In FY20, LKL’s revenue grew 47.8 per cent to RM54.95 million. It swung to a net profit of RM4.30 million from a net loss of RM2.50 million 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 per cent of the shares issued at an indicative price of RM1.10 per share.
Lim said the company projected to raise RM94.3 million, and RM26.5 million would be allocated for expansion and capital expenditure.
On its expansion plans, he said RM13 million 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 RM9.5 million of the proceeds to construct a three-storey steel structure extension across existing factory buildings and install a conveyor belt to automate powder coating.
"Another RM4 million 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 of 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 per cent increase is expected to be recognised in the FY22 revenue,” he said. - Bernama