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LAC Med Bhd has secured a RM78.9m contract for the supply of reagents and related consumables to 10 Ministry of Health’s (KKM) public hospitals in Kedah, commencing June 15, 2026 with a tenure of four years. Revenue recognition will be based on actual hospital usage requirements. The contract relates to Abbott-branded laboratory consumables, which typically carry lower, single-digit margins. Nevertheless, we view Abbott-related contract wins primarily as earnings-accretive recurring business that enhances earnings visibility. We estimate the contract could contribute RM5-7m in gross profit over its duration, assuming gross margins of 7-9%. Maintain Buy, new RM1.16 target price from RM1.14 based on 14.1x FY27F price earnings ratio, 55% upside. – RHB Investment Bank Bhd (June 18, 2026)
(Calls by analysts tracked by Bloomberg: 2 Buy, 0 Hold, 0 Sell; Consensus target price: RM1.18)
The post LAC Med retains Buy, target price up at RM1.16 appeared first on The Malaysian Reserve.


Bernardo Silva 13′
DR Congo