KUALA LUMPUR (Dec 10): LAC Med Bhd (KL:LACMED) sees Indonesia as a major future earnings driver, expecting profit margins there to be 4%-5% higher than in Malaysia.
For the quarter ended Sept 30, 2025 (3QFY2025), the group reported a 30% gross profit margin. Chief executive officer Liew Yoon Poh told reporters after its listing ceremony that Indonesia should provide strong earnings visibility over the next two to three years.
Liew noted Indonesia offers better margins despite rising business costs. This improvement is supported by market conditions and LAC Med’s exclusive distribution rights, including a new three-year deal to distribute South Korean brand Alpinion’s ultrasound systems in Indonesia.
While the company expects only a single-digit market share, Liew said this is sufficient to build a solid presence in Indonesia’s medical devices market.
The group raised RM55.65 million for the company from its initial public offering (IPO) exercise, priced at 75 sen apiece, and is channelling RM8 million of the proceeds to its Indonesian expansion. It currently has operations based in Jakarta, with planned branch openings in Sumatra, Kalimantan and Surabaya tied to internal milestone achievements.
WATCH: LAC Med targets Indonesia as key growth market
Liew said Malaysia is still an important market for LAC Med, helped by the growth of medical tourism. Private hospitals are upgrading their facilities and buying new medical technology to attract foreign patients, which increases demand for diagnostic and imaging equipment.
He added that as more medical tourists come to Malaysia, hospitals will need more advanced technology, and demand from private hospitals is expected to grow.
LAC Med aims to benefit from this trend in both private and public hospitals, especially with more than 3,000 new hospital beds expected nationwide in the next two to three years, which will boost the need for medical equipment.
LAC Med is also working with the Ministry of Health on technological enhancements and commissioning works at several government hospitals.
One such instance was establishing digitalisation and artificial intelligence systems for doctors in Perak to improve their efficiency in serving patients, says Liew.
The medical devices firm, which debuted flat at its IPO price of 75 sen earlier, was trading slightly higher at 77 a share just before the noon break, valuing the company at RM308 million.