[%iNGA%] 
Research by APEX
BUY – TP RM 1.10

" A Pleasure and Safety Investment”
• One of the world’s largest condom manufacturer, commanding c.20% global market share in 2023 with production capability of c.5.5bn pieces that is supported by strong in-house Research and Development (R&D) capabilities tailored to various demand and specifications.
• Revenue is forecasted to expand 1.1% yoy and 9.5% yoy to RM513.5m and RM562.2m in FY25F and FY26F respectively, driven by (i) strategic growth initiatives through focusing onto high-margin products within commercial and Original Brand Manufacturing (OBM) divisions, (ii) rising global population, (iii) increasing healthcare awareness and (iv) venture into new synthetic condom market which is expected to be more cost competitive thereby could bolster margins.
• Karex is derived based on FY26F core EPS of 4.2 sen pegged to PE of 26.0x, leading to a FV of RM1.10 (+32.5% potential upside from current price)

Analyst:  
Chelsea Chew
[%GZwx%]

$KLSE-KAREX 
Research by APEX
BUY – TP RM 1.10

" A Pleasure and Safety Investment”
• One of the world’s largest condom manufacturer, commanding c.20% global market share in 2023 with production capability of c.5.5bn pieces that is supported by strong in-house Research and Development (R&D) capabilities tailored to various demand and specifications.
• Revenue is forecasted to expand 1.1% yoy and 9.5% yoy to RM513.5m and RM562.2m in FY25F and FY26F respectively, driven by (i) strategic growth initiatives through focusing onto high-margin products within commercial and Original Brand Manufacturing (OBM) divisions, (ii) rising global population, (iii) increasing healthcare awareness and (iv) venture into new synthetic condom market which is expected to be more cost competitive thereby could bolster margins.
• Karex is derived based on FY26F core EPS of 4.2 sen pegged to PE of 26.0x, leading to a FV of RM1.10 (+32.5% potential upside from current price)

Analyst:  
Chelsea Chew
chelsea.chew@apexsecurities.com.my