anyone know the who are karex oem clients?

hiden gem
f & b nutrition and kianjoo alone already worth more than RM5

@hakunamatata you are right

rm2.37 now is about the time to buy. i promised i will buy at rm2.4 but i missed. i will buy now. with current emotion i think it may drop more but rm2.37 is fair price. any price below i would consider cheap.

@littlelolita this "aunty" was in tv show and is an author of 2 books and 13k followers.

you cant compare pe of company selling condom and company manufacturing condom. karex is manufacturer not retailer.(karex obm business only 7%).

but dont worry just relax. pe is high, forward pe is 10.21 only. i would say it is pretty much fully valued. relax la

just relax la... cant drop below rm2.40. i will support at rm2.40

relax la..
karex cost about 3sen per condom, if increase 50% only 4.5sen. (the actual cost is lesser than 4.5sen as 3sen is included everything)
OEM price is about 10.5sen
still make profit la... 10.5sen -4sen = 6.5sen

according to my last record (i just change some figure)

1 oem condom can earn about rm0.065
1 obm condom can earn about rm2
karex production is 5 billion and 7% is obm. so 4.65billion oem and 350million obm production
so it about rm1 billion sale and if profit margin is about 24% then it is about rm240 million or rm0.2400

average pe of rubber industrial about 20.47 (i believe it is overvalued pe as last year latex price is dropping and goreng rubber industrial and export counter, but this year latex price is rebound, ringgit is rebound)
forward pe 20 = rm4.80
margin of safety 50% = rm2.40

my friend asked management, they says increased latex price has no impact. unless it go to RM6.00/kg. so as long as latex price below RM6/kg just relax. now only RM5.05/kg.

i owned no share of karex.

based on asset valuation, it worth 5.5-6.. do your due diligence

@littlelolita according to kinsey institute, 18-29 year old have $ex an average of 112 times a year, 30-39 year old have $ex an average of 86 times a year, 40-49 yeas old have $ex an average of 69 times a year.

btw condom not only for birth control, it also prevent hiv. so number of $ex is more relevant.

1 oem condom can earn about rm0.075
1 obm condom can earn about rm2
karex production is 5 billion and 7% is obm. so 4.65billion oem and 350million obm production
so it about rm1 billion sale and if profit margin is about 24% then it is about rm258 million or rm0.2571

average pe of rubber industrial about 20.47 (i believe it is overvalued pe as last year latex price is dropping and goreng rubber industrial and export counter, but this year latex price is rebounce, ringgit is rebounce)
forward pe 20 = rm5.142
margin of safety 50% = rm2.571

extra info
latex price increase from RM3.28 (4/1/16) to RM4.90 (22/4/16). about 49.39% increased.

i owned no share of karex.

PE 4.97
Debt RM46m
Cash RM122m
Land bank 1300 acres
average land cost RM6psf (nowaday where got RM6psf land)
total land value about RM338 and hotels and apartment value about RM506m

cash + lands + hotels + apartment = 122m + 338m + 506m
= RM1 016m

market value about RM664m only.

undervalued about 34.65%, about 53% upside potential.