KUALA LUMPUR (Jan 22): K-One Technology Bhd has secured a manufacturing agreement with a new US customer to manufacture dental water flosser that it forecasts will generate sales of about RM10 million each year, for the first three years.
In a stock exchange filing, K-One said the deal was secured via its wholly-owned subsidiary K-One Resources Sdn Bhd. The customer is part of a US-based multinational, it said.
“Tooling is expected to commence in the first quarter of 2019, which will be followed by manufacturing of the products at the end of the subsequent quarter,” K-One said.
The agreement, commencing this year, is expected to contribute positively towards the group’s earnings for the financial year ending Dec 31, 2019, it added.
K-One shares closed one sen or 4.08% lower at 23.5 sen today, for a market capitalisation of RM171.3 million. Over the past year, the counter has jumped 44.62%.