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Research by Kenanga
OUTPERFORM – TP RM1.12

" Doubling Profit with Strong Margins”

KAREX’s FY24 results and dividends exceeded our forecast, with net profit more than doubling, driven by strong margins on improved product mix. Its outlook remains positive, supported by the roll-out of high-margin synthetic products and increased contributions from personal lubricant. We lowered our FY25F net profit by 5% amid reduced exposure from the tender market, and gestation period for new products. Introducing our FY26 forecasts, we raised our TP by 2% from RM1.10 to RM1.12 (on calendarized FY25 earnings) and maintain our OUTPERFORM call.

Analyst:
Cheow Ming Liang 
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$KLSE-KAREX
Research by Kenanga
OUTPERFORM – TP RM1.12

" Doubling Profit with Strong Margins”

KAREX’s FY24 results and dividends exceeded our forecast, with net profit more than doubling, driven by strong margins on improved product mix. Its outlook remains positive, supported by the roll-out of high-margin synthetic products and increased contributions from personal lubricant. We lowered our FY25F net profit by 5% amid reduced exposure from the tender market, and gestation period for new products. Introducing our FY26 forecasts, we raised our TP by 2% from RM1.10 to RM1.12 (on calendarized FY25 earnings) and maintain our OUTPERFORM call.

Analyst:
Cheow Ming Liang 
 cheowml@kenanga.com