By NUR HANANI AZMAN / Pic By MUHD AMIN NAHARUL
LKL International Bhd may rise higher after its share price climbed above the 23 sen mark recently, according to RHB Investment Bank Bhd.
Its “white candle” on Monday sent the stock to a two-month high, thereby enhancing the bullish sentiment, the research firm wrote in a recent note.
“An upbeat bias may emerge above the 23 sen level, with an exit set below the 20.5 sen mark.
“Towards the upside, the immediate resistance is at the 28 sen level, followed by the 30 sen threshold,” it said.
As a provider of medical/healthcare beds, peripherals and accessories, LKL International is a likely beneficiary in current times, given that the healthcare sector is seeing a flurry of activities amid the Covid-19 pandemic.
Shares of the group slumped 9.8% or two sen to close at 23 sen on Wednesday, valuing the company at RM98.6 million.
However, the stock recovered yesterday, jumping 4.35% or one sen to end the day at 24sen, with a market capitalisation of RM102.9 million.
LKL International’s net profit surged 295.9% to RM600,000 in the third quarter ended Jan 31, 2020 (3Q20) from RM100,000 recorded one year ago.
This was supported by a revenue of RM13.5 million recorded in 3Q20, which was 21.5% higher than RM11.1 million registered in the previous year’s corresponding quarter.
The revenue jump was driven by stronger sales posted in the group’s manufacturing and trading segments.
Higher contribution from manufactured medical/healthcare beds, and medical peripherals and accessories resulted in a 24.4% increase in the manufacturing segment’s revenue to RM9.3 million from RM7.4 million previously.
In the trading division, revenue improved 15.5% to RM4.2 million from RM3.6 million a year ago due to better sales performance of distributed medical peripherals and accessories.
LKL International’s wholly-owned subsidiary, LKL Advance Metaltech Sdn Bhd, is set to supply RM6.6 million worth of personal protective equipment to the Sarawak state government for onward distribution to public hospitals under the Sarawak state Health Department.
The Sarawak state government awarded the contract to LKL Advance Metaltech via a letter dated March 24, the group said in a statement last week.
The group is ready to fulfil the high demand for medical equipment from hospitals in Malaysia and foreign countries in their battle against Covid-19.
The company has received numerous requests for essential medical equipment from hospitals in various states across Malaysia, as well as from foreign countries, including Italy, Maldives, Mauritius, Brunei and Bangladesh, its MD Lim Kon Lian said.
“This includes an urgent enquiry of 50,000 hospital beds to be supplied within a five-month time frame to one of the export markets, indicating the high-level urgency to expand their capacity.
“Recognising the urgency amid the Covid-19 pandemic, we are doing our utmost best to fulfil this huge demand by expediting production and leveraging a strong and extensive distribution channel throughout Malaysia to supply these products without delay,” he said.
LKL International’s existing network with public and private hospitals nationwide has been built over the past 27 years.
“Our first priority is to support the crucial frontline staff of local hospitals in their line of duty by providing additional PPE to healthcare personnel,” Lim added.