LKL International optimistic on FY2019 prospects

KUCHING: Leading medical/ healthcare beds, peripherals and accessories provider LKL International Bhd (LKL) is optimistic of its prospects for the financial year ending April 30, 2019 (FY19), despite the challenging operating environment in the near term.

The group saw revenue leap 22.8 per cent to RM7.5 million for the fourth quarter ended April 30, 2018 (4Q18) from RM6.1 million in the fourth quarter ended 30 April 2017 (4Q17), charting its second consecutive quarter of y–o-y expansion.

The improved revenue was due to stronger demand for the Group’s in-house manufactured medical beds, peripherals, and accessories, as well as new contribution from the medical devices distribution business.

Revenue contribution from the domestic market rose 9.2 per cent to RM4.5 million in 4Q18 compared to RM4.1 million in the preceding year corresponding quarter.

Meanwhile, 4Q18 export sales leaped 50.3 per cent to RM3 million from RM2 million in 4Q17 mainly due to stronger demand from Asian countries other than Malaysia. Going forward, the group is hopeful that the new Federal Government would reassess procurement and competitive policies to prioritise the growth of capable domestic manufacturers of medical accessories, equipment, and components.

Lim Kon Lian, managing director of LKL said, “We encourage the new Federal Government to be more inclusive of the domestic medical manufacturing industry through their procurement practices.

“By providing more opportunities to local players through a merit-based system, the Federal Government can foster a conducive environment for manufacturers to improve competitiveness and move up the value chain.”

“With a level playing field, Malaysia is surely capable of producing companies capable of rising to the global stage. LKL, for instance, has attained international accreditations such as the ISO 9001:2008 and EN ISO 13485:2012 certifications, which has enabled us to export our products to various countries across the globe.”

While group revenue increased, LKL reported net loss of RM1.5 million in 4Q18 as compared to net profit of RM0.2 million in 4Q17 due to product mix sold, higher raw material costs, increased operating costs associated with the Group’s new subsidiary, as well as increased competition and weaker demand.