KUALA LUMPUR (Oct 13) -- Malaysian healthcare equipment maker LKL International estimates to spend about 13 million ringgit ($3.13 million) to expand output as demand for healthcare products rise, its managing director said Tuesday.
The company will be able to produce 6,500 units of medical beds annually by the end of next year, Lim Kon Lian said at a news conference after annual shareholders’ meeting. Its medical bed output is currently at 5,000 units.
“We are witnessing greater demand for medical beds from hospitals and medical centers, with orders in hands of more than 750 beds, which would be delivered over the next 14 months,“ he said.
Other expansion initiatives include buying new machines at a cost of four million ringgit, and building a three storied steel structure extension and a conveyor line that will cost 9.50 million ringgit, Lim said.
In view of hefty demand, Lim expects the company will be able to maintain double-digit revenue growth through this fiscal year ending Apr. 30, 2021.
In the next three to five years, the company intends to produce own dialysis machines, Lim said.
This follows its announced plan to acquire a 60% stake in Tahmaz Meditech for 12 million ringgit.
“Tahmaz Meditech is in talks with Malaysian Armed Forces and Health Ministry on potential supply of dialysis machines to the government,“ Lim said.
- By Gho Chee Yuan; Terence.Gho@newsrise.org; 60320267363 - Edited by Abhrajit Gangopadhyay - Send Feedback to feedback@NewsRise.org - Copyright (c) 2020 NewsRise Financial Research & Information Services Pvt. Ltd.
Quite certainly hospital beds etc will be in demand due to rising cases. Growth is strong and should meet profit projections. Hopefully with strong financial performance, big dividends can be given.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Chh9618
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Posted by Chh9618 > 2020-10-20 06:20 | Report Abuse
Lkl will up slow and steady