Friday 3 April 2020

SCOMNET - STB sees surge in new orders

April 3, 2020 @ 11:52am
NST BUSINESS

KUALA LUMPUR: Supercomnet Technologies Bhd (STB) has emerged as a beneficiary of the increased global healthcare expenditure as a result of the coronavirus (Covid-19) pandemic.

The company, which manufactures critical devices used for Covid-19 treatment, has recorded an increase in product demand, particularly since the beginning of 2020.

Moving into the second quarter of the year, STB expects to see further increase in new orders, especially from the United States and Europe.

"The company is working hard to fulfill the demand that it received. Based on inquiries and orders, we anticipate demand for medical devices to further increase in the US and Europe over the next few months.

“This is because Covid-19 is at different stages in each country, and all governments are trying their best to contain the infections," STB spokesperson said in a statement today.

Among its products that have seen a surge in orders include the disposable bronchoscope, which is used in the first line of lung treatment for patients with suspected or confirmed Covid-19 infections.

The usage of the bronchoscope is currently highly recommended by the American Association for Bronchology and Interventional Pulmonology.

The other product is a critical care monitoring cable that is presently being used for Covid-19 patients in the intensive care unit.

STB produces medical cables that are generally used for connecting various medical devices outside the human body.

It also produces reinforced tubes - used as endoscope and part of endoscopy accessories, connectors and medical tubes.

All of its medical tubes are produced for the North and Central American and European markets.

Due to the critical mission nature of its products, its cables are approved by various approving authorities such as the European Medical Agency, and the Food and Drug Administration of the United States.

Meanwhile, STB production activities remain undisrupted despite the Covid-19 pandemic, and affirmed its ability to meet the sudden increase in product orders.

Early last week, STB received the approval from the Ministry of International Trade and Industry (MITI) to allow the group’s subsidiaries, Supercomal Medical Products Sdn Bhd (SMP) and Supercomal Technologies Sdn Bhd (SCTB) to operate during the Movement Control Order (MCO) from March 18 to April 14.

“Although our working staff have been halved, the plants are operating at maximum level for critical devices used for Covid-19 treatment. We are confident of fulfilling our existing customer orders for the year. I would also like to thank the government’s support and our hardworking staff for all their efforts during this time,” said the company spokesperson.

For its financial year (FY) ended Dec 31, 2019, STB recorded a 54.61 per cent jump in net profit to RM18.82 million on the back of a 39.28 per cent increase in revenue to RM122.97 million.

The Group currently has a dividend yield of 3 per cent based on the 1.5 sen it distributed last year.

https://www.nst.com.my/business/2020/04/580881/stb-sees-surge-new-orders

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