no need use condom just cum inside before 3 days before n after menstruation 100% no baby , eat postrinol within 72 hour max 4 times per month also no problem
It seems that the current profit level for Karex has come down to only around RM1mil to RM2 mil per quarter from the high of more than RM10 mil/ quarter recorded in FY14 to FY16. The financial result was highly affected by the lower average selling price of its products coupled with the higher cost structures (in particular the higher labour cost). Assuming the company managed to reach a PAT of RM10mil in FY19, at the current share price, the company has a valuation of 42.6x PE. Very high for a company that is facing downward profit pressure.
What is more alarming is the recent news report by UK’s The Telegraph which indicates the very poor working and living conditions of Karex foreign workers. This has put the company under the spotlight with the biggest risk being the loss of contract from some of its big clients. National Health Service (NHS) in UK for example, source a large volume of condoms from Malaysia (which most probably is from Karex). They have since said to be reviewing their decision in light of the report. Superdrug stores, a subsidiary of Watson Group (in Malaysia famous for its pharmacy chain), has already suspended orders from Karex starting in January 2019. Tesco also took the same decision to suspend their orders. Other companies like Reckitt Benckiser (owner of Durex) are still investigating. Please take note, that the companies mentioned in the reports are all UK based. Other companies from other countries might also follow suit and start their own investigation on the accusation of Karex treatment of its workers. Investors might need to wait for the 3Q19 result to see if Karex financials are affected or not by the news reports (I would assume it does, given some clients decision to already suspend their orders).
If you are looking to diversify your portfolio outside of Karex (due to its earnings uncertainties and relatively high valuation) I would recommend you to look at MBMR.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.9x PE (based on target FY18 profit of RM145mil. 9m profit is already RM106mil). PB is low at only 0.7x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.
FY19 growth will be driven by the still high demand of the new Myvi and the newly launched SUV Aruz and also the newly revamp Alza in 2H19. The recent announcement of closure and potential disposal of the loss-making alloy wheel manufacturing business alone is expected to boost the company’s profit by an additional RM10mil to RM20mil. I am projecting a profit to shareholder of RM170 mil for FY19 which at the current price values MBMR at only 5.9x PE.
Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. There are 8 analysts in total covering the stock with most of them having a TP of above RM3 (all have a buy rating). The average TP for the 8 analysts is around RM3.50.
Beware Karex! This company won’t have good profit in middle term. 40 million Cash will be spent up within this 2 years. One brand condom still can’t get market share in this 3 years. High PE, Aberdeen disposing. don’t simply hold the falling knife, we will get harm.
The problem for karex is the future very uncertain and not looking good. Own brand became competitor to their customers. Sure their customers will look for other manufacturer very soon.
No matter how bad the current situation, the bad news have reflected the share price, expected the downside is limited and waiting for rebound anytime from now.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
rivter
163 posts
Posted by rivter > 2018-12-22 14:09 | Report Abuse
TP 0.94 ? 2028 YEAR AR?