Richard Lo, President and CEO of Techcomp, speaking with analysts. File photo by NextInsight
SINGAPORE-LISTED Techcomp (Holdings) today said it has won via tender a US$3 m order from the United Nations Office for Project Offices.
The tender was for the supply of two BSL3 (P3) turnkey laboratories and refrigerated centrifuges to India for animal research and blood banks, with delivery expected in the second half of this year.
Techcomp said the deal will have a positive impact on its business growth in India in FY2009. In FY2008, Techcomp generated 3.8 mln usd in revenue in India.
Techcomp said the UN-commissioned orders for use on the subcontinent demonstrate a “growing acceptance” of the company’s equipment by international organizations.
Techcomp added that its line of analytical and scientific life science instruments was garnering increased attention in the wake of the ongoing global H1N1 viral outbreak.
“Record January sales carry into May; (we are receiving) increasing inquiries for testing equipment due to Swine Flu,” the company said.
The number of confirmed H1N1 flu cases worldwide has surpassed 10,000, the World Health Organization (WHO) said Tuesday. Commonly known as Swine Flu, the outbreak has sickened 10,176 people and caused at least 80 deaths, mostly in Mexico, the organization said.
The actual number of people affected may be higher, as it takes time for national governments to confirm cases and report them to the global body.
Mr. Richard Lo, Techcomp’s President and CEO, said the successful tender from the UN proves the firm is “fast gaining reputation amongst international bodies as the brand of choice for scientific and laboratory equipment.”
Techcomp’s product line clearly exhibits some recession-proof and even countercyclical characteristics, as governments and organization are its major clients.
Many of its customers are also research universities or hospitals which are less captive to their own quarterly financial performance than listed corporations, and also need real-time responses to threats of pandemic whenever and wherever they arise.
Typically, a country spends around 0.1% of its GDP on scientific instrumentation, and this ratio is less captive to periodic economic downturns as would, say, orders for toys or semiconductors.
52-week trading range: 8-45 cents. Techcomp closed at 23.5 cents today (May 20)
For much of Techcomp’s product line, China’s recent difficulties with product quality and safety -- as well as the troika of diseases threatening the region over the past half decade (SARS, Bird Flu and now Swine Flu) -- have inadvertently provided opportunities for the company.
And India, as the world’s second largest emerging economy behind China, has similar issues in terms of product safety and disease control, which nicely meshes with Techcomp’s desire to expand its footprint on the subcontinent.
“Things are looking encouraging for us with record sales in January carrying on until now. In addition, we have had increasing inquiries for our biosafety cabinets and turnkey laboratories which, according to the WHO, are essential for the isolation of virus in Swine Flu in samples,” Mr. Lo added.
Richard Lo, President and CEO
Techcomp’s turnkey labs provide maximum protection for research and tests on diseases like SARS, Avian flu, tuberculosis, etc.
A BSL3 rating means the laboratory has attained a biosafety level three-status set by Centers for Disease Control and Prevention. Techcomp can deliver and set up labs in just 3 months and furnish them with equipment like centrifuges, biosafety cabinets, and incubators.
Refrigerated centrifuges are vital for accelerating the sedimentation process, which will allow the user to quickly separate a suspension or molecules in a solution.
Techcomp’s FY2008 revenue increased 23.1% year-on-year to 81 mln usd backed by growing Asian demand. Techcomp’s strong distribution network for a wide range of the world’s leading brands of highly advanced analytical equipment is predominantly in China.
Techcomp’s shares closed up 0.5 cent at 23.5 cents today (May 20) on 490,000 shares traded.
Techcomp's press release on the United Nations order, here.
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