Overdone?

KUALA LUMPUR (May 31): Karex Bhd’s share price hit a low of RM1.83 this morning at 10.08am — also the lowest since its closing of RM2.25 on May 24 this year — after a research house highlighted an opaque outlook for the condom manufacturer as well as contraction in third quarter earnings.

Prior to this, the stock had been at its lowest two years ago, when it closed at RM1.83 on March 19, 2015. Karex’s net profit in the third quarter ended March 31, 2017 (3QFY17) contracted 28.3% to RM6.9 million from RM9.63 million a year earlier, on higher distribution expenses. Source

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The Condom Company

Listed Malaysian company, Karex Berhad is engaged in investment holding. The Company’s principal business activities include investment holding, manufacture and sale of condoms, latex probe covers, sterile catheters and other rubber products. The Company’s segments include condoms, catheters, and probe covers, lubricating jelly and others. The Company’s products include condoms, lubrication jelly, probe cover and foley balloon catheter. The lubrication jelly is greaseless, non-toxic and water soluble, and is suitable for gynecological use or when additional vaginal lubrication is needed. The probe cover product is specially designed for flexibility and safety during intracavity examinations with ultrasound. The foley balloon catheter product is specially designed for transurethral drainage of the urinary bladder, commonly used on patients anesthetized or sedated for surgery or other medical care. The Company operates in Malaysia, Thailand and the United States. At market close on 13 March 2017, Karex’s share price has fallen to a year low of RM1.98. Karex’s share price has been on a declining trend ever since the announcement of its latest quarterly result on 24 February 2017, in which there was a decline in q-o-q earnings. Continue reading “The Condom Company”