KPower’s healthcare unit bags RM48.64m contract for airbags, Covid-19 test machine in Indonesia

KPower’s healthcare unit bags RM48.64m contract for airbags, Covid-19 test machine in Indonesia
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KUALA LUMPUR (Feb 16): KPower Bhd’s healthcare unit has won a RM48.64 million contract from an Indonesian company to provide airbags and a Covid-19 test machine.

In a bourse filing, the company announced that its wholly-owned subsidiary Power Healthcare & Technologies Sdn Bhd (KPHealthTech) had accepted a letter of award from PT Biotech Maju Sejahtera (PT BMS) for the GeNose airbag and breathing bag, and GeNose Covid-19 test machine.

Under the contract, PT BMS will make purchase orders for the airbags and Covid-19 kits from KPHealthTech, which will then request the orders from the manufacturer of the medical devices. The items will be delivered to PT BMS’ warehouse.

PT BMS will then pay KPHealthTech within 40 days from the date of delivery of the medical devices at PT BMS’ warehouse.

The award is effective for 12 months and is expected to contribute positively to its net assets, earnings and earnings per share for the financial year ending June 30, 2021 (FY21) and FY22.

“The board is of the opinion that the award is in the best interest of the company,” the group said.

In a separate statement, KPower group managing director Mustakim Mat Nun said this contract further enhances the firm's role in combatting the Covid-19 pandemic while growing its healthcare segment in one of the most populous countries in the world.

"Including this new contract, we have clinched over RM70 million worth of contracts in the healthcare segment under KPHealthTech in Indonesia to date.

"Together with our logistics arm, Chemtrax Sdn Bhd’s involvement via the transportation of nitrile butadiene rubber and synthetic latex which are key materials for rubber gloves, we believe that we can contribute to the global efforts against the Covid-19 pandemic. As a regional player, we are committed to support the fight and help build a more resilient and sustainable future,” said Mustakim. 

At noon market close, shares in KPower were down 0.86% or two sen at RM2.32, valuing it at RM1.05 billion.

Surin Murugiah