LKL makes strong debut on Ace Market

Boost for Bursa Malaysia with listing of Lotte Chemical Titan Holding Bhd

KUALA LUMPUR: Healthcare-related firm LKL International Bhd made a strong debut on the Ace Market of Bursa Malaysia, opening at 35 sen, which was 15 sen above its offer price.

At 9.11am, LKL was up 9.5 sen to 29.5 sen. There were 43.67 million shares done at prices ranging from 29 sen to 35 sen.

However, the FBM KLCI fell 4.01 points or 0.25% to 1,624.25. Trading volume was 172.61 million shares valued at RM61mil. There were 96 gainers, 121 losers and 161 counters unchanged.

PublicInvest Research set a fair value of 22 sen per share for LKL, citing positive near term catalysts in the medical beds and peripherals industry.

It  received an oversubscription rate of 92.84 times for its eight million shares made available for public subscription.

LKL recorded a net profit of RM2.35mil on the back of revenue of RM11.78mil for its third quarter to Jan 31, 2016. For the nine-month period, net profit was RM4.13mil on the back of revenue of RM27.84mil. 

The group’s revenue was mainly derived from manufacturing of medical and healthcare beds and manufacturing of medical peripherals and accessories sales amounting to RM4.35mil and RM4.6mil respectively. 

The local market continued to contribute significant portion of revenue amounting to RM11.37mil or 96.53% of the group’s total revenue.

The company's core activities are the provision of medical/healthcare beds, peripherals and accessories that are largely catered towards hospitals, medical centres and various healthcare-related facilities.