KLSE (MYR): KAREX (5247)
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Last Price
0.80
Today's Change
+0.01 (1.27%)
Day's Change
0.79 - 0.805
Trading Volume
269,500
Financial Year 2020
Financial Year | Annual Audited Account | Annual Report | View | |
---|---|---|---|---|
Ann. Date | Ann. Date |
i seldom use condom. for this time, i make an exception for karex. hope to get bountiful free condom to use with trial subjects.
2023-09-19 23:17
KAREX, 5247, Main Board Consumer Stock
The stock retreated from a high of 86 cents in February 2023, but the decline appears to be over as the stock has rebounded from the 61.8% Fibonacci retracement level. Both the Strength and Weakness Index (RSI) and the Average Divergence Index (MACD) show strong upward momentum.
In my opinion, stronger top-line growth will be a near-term positive for Recreation & Leisure Company, which closes its accounts on June 30 every year, has been facing net losses between the third quarter of fiscal year 2021 and the fourth quarter of fiscal year 2022. However, the company successfully turned a profit in the first quarter of fiscal year 2023.
Revenue for FY2023 was RM532.1 million, an increase of 26.2% compared to FY2022. The increase in revenue was mainly due to increased sales of condoms and lubricants, especially in Asia and the America.
The easing of global logistics disruptions and stabilization of raw material prices will also help improve Karex's profitability during this period. As a result, core net profit increased to RM15.4 million in FY2023 (net loss of RM3.9 million in FY2022).
However, what is surprising is that after the company announced its fourth-quarter results, it announced an interim dividend of 0.5 cents per share (accounting for 50% of net profit per share). This sudden surprise exceeded market expectations.
We understand that from 2020 to mid-2022, the global condom market experienced a difficult period of sharp decline in sales.
Sales of major players in the condom industry have experienced double-digit declines in the past two years. This situation is mainly related to the impact of the COVID-19 pandemic, with lockdown measures limiting human interaction and affecting condom use.
However, according to recent reports in Chinese media, condom products have experienced strong consumer demand this year, especially from online platforms, as coronavirus pandemic controls are eased and social and economic activities gradually return to normal.
The company has also launched a new condom product and is currently seeking approval from the U.S. Food and Drug Administration (FDA). The new condom product uses a thin film plastic material, resulting in better temperature and a more realistic feel.
This improvement is expected to encourage people to switch to this new product. It is worth mentioning that the profit margin of this new product is significantly higher. You can study Condom 001.
On the other hand, raw material (natural rubber and latex) and freight prices continued to return to their original levels after the epidemic eased, and increased the company's profits.
Karex is exposed to foreign currency risk in sales and purchases involving U.S. dollars. The appreciation of the US dollar against the ringgit will have a positive overall impact on its revenue.
According to my estimation, every 10% appreciation of the US dollar against the ringgit may increase the company's net profit margin by a single-digit percentage. However, this does not take into account the company's foreign exchange hedges, which may mitigate the impact of currencies on its financial position. However, dollar loans used to support overseas operations may offset this effect to some extent.
Karex is a Malaysian condom manufacturing and sales company that also provides personal lubricants, sex toys, catheters, probe covers, HIV and pregnancy test kits, and other medical-related products.
The company operates in Africa, Asia, the America and Europe. It serves brand owners, governments, NGOs and retail buyers.
Conclusion:
Karex's net profit growth has been boosted by a surge in demand for condoms as pandemic restrictions ease and socioeconomic activities return to normal. Stable production costs have increased net profit margins.
Karex shares appear to have stopped falling, with strong technical indicators showing signs of recovery. If its stock price breaks out of the cloud resistance, it could be on track for a significant move higher.
The stock's recent decline may simply be because funds are waiting for FDA approval of new condoms. Once it gets FDA approval, this condom stock is expected to hit a new high.
Regardless, freight costs, soaring latex prices, and a sharp decline in condom sales are potential risks that could curb Karex's profits.
2023-11-15 15:54
https://www.nst.com.my/business/2023/01/867339/karex-benefit-strong-condoms-demand-growing-tailwinds-favourable-environment
CGS-CIMB Research raised its FY23-FY25 to account for higher ASPs, better production output, and margin expansion from lower input costs.
The research firm reiterates an 'Add' call for Karex with a target price raised to RM0.96.
2023-11-15 18:26
https://www.thestar.com.my/business/business-news/2023/11/09/glove-sector-on-the-mend
https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=7153
Kossan returns to be profitable after Hartalega did so.
2023-11-15 18:51
KAREX (KAREX, 5247, main board consumer stock) closed at 67 sen on 16 November 2023
The daily chart trend of Karex may show a rebound trend, and it may moves upward towards the target price of 72 sen.
We are now waiting for its 1st results, on the day where its AGM is held, on 27 November 2023.
2023-11-17 10:34
Today 20 Nov 2023, one whole day of red (-0.01) at RM0.695 due to overbought position.
2023-11-20 18:02
Why Karex so strong ha? From $0.565shoot up to$0.650 within 2 weeks time?
Any news?
2023-11-20 18:10
@xiaoeh, all glove counters are turning around. From negative earnings to positive earnings. Karex is following the gloves stocks. The 1st quarter results will be released next Monday. Expected target price is RM0.72.
2023-11-20 18:47
Still manage to turn from -0.005 to +0.010 and closed at RM0.705. The AGM and 1st quarter results are on next Monday (27 Nov 2023). The target price still maintains at RM0.72.
2023-11-21 17:04
By the end of the first half of the financial year 2024 (28 Feb 2024), the FDA (Food and Drug Administration) of US should have approved the new 001 condoms to be exported to US. The price of Karex will move north.
2023-11-21 17:08
Sold all at RM0.690 and RM0.685. Got to follow the bears. I shifted to poultry counter LHI (Lay Hong International).
2023-11-22 19:13
001 condoms are by karex? I thought there are by Okamoto. One condom released a Graphene condom 1 month ago is US
2023-11-24 15:38
Very good 1st quarter results. Next Monday should rebound with high volume.
2023-11-24 18:59
Posted by xiaoeh > 4 days ago | Report Abuse
Good exit point in technical term Chloe.
Walao...
my technical got a lot of rooms to improve
2023-11-27 21:36
I went in today (2 Feb 2024). There is nothing much that I could do now. Just wait until end of February to see whether its quarter results is good enough or not. Bears are in full control now.
1 month ago
The long tail below the body is indicative of sellers trying to push the price down by a significant amount but the buyers manage to push it back up. The buyers do this to show a definitive buying strength which will lead to an increase in price, going forward.
1 month ago
wasted
look for cheap now even more expensive
good stuff won't get cheap
it happened many times 😂
1 month ago
KAREX is riding on the strong growth in the condom industry, focusing on high-margin products which will take its profitability to a higher level. It is penetrating high-growth markets with premium offerings backed by innovation and strict compliance with international standards. We project its earnings to double in FY24, followed by another 88% surge in FY25. We initial coverage on KAREX with an OUTPERFORM rating and a TP of RM1.00.
Kenanga Research
1 month ago
Read and listen to the words from Karex CEO. "Karex pivots beyond latex condoms". Results have been better quarter over quarter for 5 consecutive quarters. He said 26 Feb 2024 will also be better than the previous quarter. New products are lubricant and gloves.
1 month ago
Please understand that RM0.87 at this moment is not Karex all time high. Its all time high was RM3.10 on 11.3.2016. It is unlike Sunway, MBMR, HUMEIND, etc.
1 month ago
Still thinking very hard whether or not I should bet on Karex next Monday, with its 2nd quarter results after 5 pm. Now 0.835 and the highest 0.87.
1 month ago
Very, very good 2nd quarter results:
PAT 2nd quarter FY 2024: RM7,324 mil [compared to PAT 2nd quarter FY2023: RM2,025 million, which is an increased of 262% YoY]
PAT 2nd quarter FY 2024: RM7,324 mil [compared to PAT 1st quarter FY2024: RM5,256 million, which is an increased of 39% QoQ]
Hopefully, the operator will help to break the 52-week ATH of RM0.87, starting 27 Feb 2024
1 month ago
The heyday of being the sole and top condom manufacturer in Malaysia is over for Karex Bhd. I used to own a significant number of Karex shares, but it saddens me that the management has failed to turn the company around even after many years. I don't believe Karex will recover to its previous highs
4 weeks ago
Agree with Kenanga's analyst with regards to the emphasis on improving margins by the company. However, the focus on premium products is not really feasible cause condom users do not place much importance on the actual quality of the products compared to other consumer staples.
There is no way for the company to bring the sales volume/total sales back to 2016 levels because the competition within the condom market is surging. Despite the recent introduction of abortion laws in the US, there isn't any significant uptick in sales for the US market which is a bit disappointing.
However, there still remains a few tailwinds for the condom market and near-term catalysts for Karex. Such as weaker Ringgit, and the stabilisation of raw material/labour cost. And the diversification/venture into gloves and lubricant products, on top of the company's healthy balance sheet.
My mid-term PT is about RM0.90
4 weeks ago
Consolidation shall finished..
$1.06 kenanga target coming..
KAREX is the largest condom Mfg in the world..
It need to reflect its strength but not below $1 penny world class
1 day ago
churrosnight
Wait for momentum...
2023-06-27 16:51