LKL International expands presence in export markets

KUALA LUMPUR 25 March - Medical/healthcare beds, peripherals and accessories provider LKL International Berhad continued expanding its presence in export markets, with export revenue doubling to RM5.6 million in the third quarter ended 31 January 2021 (3Q21) from RM2.8 million previously.

This was driven primarily by improved sales of medical/healthcare beds to distributors in Europe, and ongoing deliveries of nitrile and latex gloves to Hong Kong to fulfill export contracts secured in the second half of 2020. Exports constituted 48.7% of total revenue in 3Q21 compared to 20.9% in the previous year.  

Mr. Lim Kon Lian Managing Director of LKL International Berhad said: “Our exports of medical/healthcare beds to Netherlands are providing vital support to its COVID-19 response. We also target to grow our export sales further, and have conducted various sales and marketing engagements with potential customers from new export markets such as United States, Canada, Pakistan and Bhutan.

"Meanwhile, we have been fulfilling glove deliveries to Hong Kong as part of our existing glove supply contracts, and are expecting to deliver another RM270 million worth of orders throughout 2021. It is our goal to provide as much assistance as possible to ongoing efforts aimed at containing the pandemic.

"On the domestic front, we continue to explore more avenues to help the medical and healthcare sector combat COVID-19, as well as upgrade capabilities beyond the pandemic. Most recently, we are promoting the adoption of Trace Token digital contact tracing devices in Malaysia, which would enhance COVID-19 mitigation efforts and complement the vaccination programme. As a start, we are targeting sales to hospitals, factories and construction companies within Selangor,” he said.

LKL International has exclusive rights to distribute Singapore-based iWOW Technology Pte Ltd’s Trace Token in Malaysia. Trace Token is a small Bluetooth device which detects nearby Trace Token devices and securely stores the contact history of individuals, which can then be downloaded to facilitate contact tracing efforts.

The positive export performance in 3Q21 helped the Group mitigate weaker local sales, which saw a 44.2% decline to RM5.9 million from RM10.7 million last year mainly due to lower sales of medical/healthcare beds. The local market contributed to a reduced 51.3% of the Group’s total revenue as compared to 79.1% a year ago.

Overall, the Group’s total revenue decreased 14.0% to RM11.6 million in 3Q21 from RM13.5 million in the preceding year’s corresponding quarter. The decrease in revenue was mainly due to lower contributions from the manufacturing segment, which declined 21.5% to RM7.3 million from RM9.3 million in the previous year due to lower sales of manufactured medical/healthcare beds, and medical peripherals and accessories.

Meanwhile, the trading division’s topline contributions remained stable at RM4.3 million, a 2.5% increase from RM4.2 million a year ago, supported by stronger sales of distributed medical peripherals and accessories, which mitigated weaker sales of medical devices.

The Group’s net profit amounted to RM0.1 million in 3Q21, compared to RM0.6 million in the preceding year’s corresponding quarter on less favourable product mix and an increase in administrative expenses.

For the cumulative nine-month period ended 31 January 2021 (9M21), LKL International’s revenue increased 20.9% to RM40.5 million from RM33.5 million previously on the back of substantial growth achieved in the trading segment, in addition to commendable performance posted by the manufacturing division.

9M21 net profit stood lower at RM0.3 million versus RM1.2 million in the preceding year’s corresponding period, due to unfavourable product mix and higher administrative expenses incurred compared to the previous year. - DagangNews.com