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Overview
Financial Highlight
Headlines
Business Background LKL International Bhd is Malaysian company which is principally engaged in the provision of medical and healthcare beds, peripherals and accessories. The company’s operating segments are Manufacturing and Trading. The Manufacturing segment is involved in the manufacturing of medical and healthcare beds, medical peripherals and accessories and the Trading segment is involved in trading of medical peripherals and accessories. The company serves its products to various end users such as hospitals and medical centers, as well as other healthcare-related facilities including clinics and specialist institutions. LKL operates its business in Malaysia, Africa, Asia, Europe and other regions. Most of its revenue is earned from Malaysia.
  Miki I'm holding this counter since day 1...too bad all the news just a news..every day the price is dropping n dropping 19/02/2018 21:37 bleuerouge quite strong support at 0.175 and indicators pointing north. I just took small quantity at 0.180. 03/04/2018 20:46 Shinnzaii Today goods news again...LKL gonna recover trend...keep get contract hospital 02/08/2018 07:13 Shinnzaii http://www.theedgemarkets.com/article/lkl-bags-rm6m-contract-deliver-beds-equipment-hospital 02/08/2018 07:15 Shinnzaii There is a need for healthcare industry to improved, so now medical equipment demand also improved...give some faith for LKL 02/08/2018 07:16 Shinnzaii QR may still red, news profit may reflect in upcoming quarter, not this quarter...hold it until next quarter 03/08/2018 09:03 Bratt No need to buy LKL for the next 12 months. Now with poor government budget, hospitals are forced to squeeze. Hospital beds must be used longer than the normal (instead of buying new ones). And maintenance must be cut. 18/10/2018 10:40 FairTalk Already reached 12 sen and volume traded very low. Hope it will rebound soon. 05/12/2018 10:12 commonsense When it first listed its share to the public back in May 2016, most investors were bullish of the company’s prospect (in particular the potential profit growth) given the amount of budget allocated by the government for healthcare averaging RM25bil in FY16 and FY17. More importantly was the government’s commitment to build new hospitals while improving facilities of existing government hospitals which should bode well for LKL (which main business consist of supplying medical beds). Surprisingly, the financial performance of the company fell when compared to their performance prior to the IPO. In FY15 the company managed to record a revenue of RM39mil and a profit of RM6mil. Upon its listing, FY17 (being the first full year performance) only managed to record a revenue of RM33.8mil and a profit of RM4.4mil decreasing by 13% and 27% respectively. In FY18 it was worse as the company revenue fell to less than RM30mil and recording a loss of RM1mil. FY19 seems to be a bit better than last year but still far from the performance prior to the IPO (1H19 Revenue RM17.3mil and Profit RM140k). Even if the company managed to deliver a PAT of RM1mil in FY19, it would mean that the company’s is currently being valued at 45x PE which is high given the doubt of the LKL’s ability to grow the profit. The company’s balance sheet is ok with debt of RM7.8mil and cash of RM10.3mil. At an NTA of 14 sens per share the company is currently trading at around 0.9x PB. If you are looking to diversify your portfolio outside of LKL International (due to its weak earnings growth outlook) I would recommend you to look at MBMR. MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.7x PE (based on target FY18 profit of RM145mil. 9m profit is already RM106mil). PB is low at only 0.6x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17. For FY19 growth will be driven by the still high demand of new Myvi and the newly launched SUV Aruz and also the newly revamp Alza in 2H19. I am projecting a profit to shareholder of RM160 mil for FY19 which at the current price values MBMR at only 6x PE. Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.50. Good luck. 17/01/2019 16:33  |
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