Posted by lai81533 > 2019-04-17 05:28 | Report Abuse

Strong momentum

Posted by minher > 2019-04-17 08:22 | Report Abuse

Both Karex and TopGlove denied the any corporate deal. Karex just goreng play. Today Karex likely will profit taking. Please caution.

Posted by StanleyHong > 2019-04-17 08:43 | Report Abuse

Will buy more Karex if can break support line @ 0.63

Posted by minher > 2019-04-17 08:56 | Report Abuse

Everyone dun fall into trap. Karex and TopGlove denied any corporate deal.

Posted by cmtfly > 2019-04-17 08:59 | Report Abuse

Minher, don't know, mouth shut

Posted by minher > 2019-04-17 09:28 | Report Abuse

I think when goreng play is over. Karex will drop to its fair price around 35-40sen. Please be caution.

Posted by minher > 2019-04-17 09:34 | Report Abuse

Karex - Results Below Expectations

Karex reported a lackluster performance: 1HFY19 PATAMI of RM3.4m (-54.3% yoy) fell short of both our and consensus expectations, delivering only 25% and 27% of our respective full-year forecasts. The weakness was due to intensifying competition within the tender market, where margins continued to be under pressure despite the increase in sales volume. As such we are reducing our TP to RM0.35 on the back of 15-24% EPS cuts for 2019-21E, while keeping our SELL call unchanged.

Record Revenue But Not Profit
Despite delivering record revenue for the quarter, PATAMI for 2QFY19 is lower by 29% qoq and 56% yoy, due to a decline in gross profit margin. The improvement in revenue during the quarter was boosted by the fulfillment of a tender order which was delayed from 1QFY19. However, we believe there is still downside risk to margins as management reckons that the overcapacity issue would only improve if the industry consolidates. The GP margin for the tender market has fallen from c.20% to less than 15% currently.

Controlling A&P Cost to Maintain Profits
Management has also taken a more conservative approach in controlling its A&P spending in regards to its OBM segment, and has guided that the expenses would likely hover around RM22m/quarter or around 20-30% of segment revenue. Karex will not slow down its expansion into new markets but engage in different marketing approaches to increase its exposure. We believe that management would likely stick to the self-imposed cap, due to its declining net cash position as profit margins continue to deteriorate. Karex is in a net cash position of RM4.6m (2QFY18: RM20.4m).

Maintain SELL With a Lower TP of RM0.35
While the long-term outlook of Karex venturing into OBM remains attractive, we believe that the short-term outlook for Karex remains challenging due to weak demand from the tender market and also the elevated cost from the OBM segment. We are cutting our FY19-21E earnings by 15-24% to factor in the current-quarter performance and lower our DCF-based TP to RM0.40 from RM0.35, while maintaining our SELL call unchanged.

Source: Affin Hwang Research - 26 Feb 2019

Posted by Snapbuy > 2019-04-17 09:37 | Report Abuse

I bought at 60sen yesterday. Should i cut loss now or hold ? Any advice here ?

Posted by Gary_hon > 2019-04-17 10:00 | Report Abuse

Run

Posted by SWT1988 > 2019-04-17 10:01 | Report Abuse

Malaysia stock market not so good today. Maybe because of the bond story. Even hot iwcity keep dropping

Posted by SWT1988 > 2019-04-17 10:03 | Report Abuse

Let c karex be able to support at 0.55 before lunch or not.

Posted by James Ng > 2019-04-17 10:10 | Report Abuse

https://klse.i3investor.com/blogs/general/202693.jsp
[转贴] [Facebook live:浅谈Karex bhd (Karex)] - James的股票投资James Share Investing

Posted by smarty86 > 2019-04-17 10:10 | Report Abuse

The support level shows at 0.55, if it's broken, its likely will go down further.

Posted by John Lu > 2019-04-17 11:11 | Report Abuse

Top Glove take over news so hot. TP RM1 above

Posted by John Lu > 2019-04-17 11:58 | Report Abuse

Today close above 65c please

Posted by cmtfly > 2019-04-17 12:06 | Report Abuse

Minher, thanks for the info

Posted by Melady > 2019-04-17 12:27 | Report Abuse

Then break 63

Posted by Lee Yong Hour > 2019-04-17 12:58 | Report Abuse

Any good news from topglove?

Posted by Lee Yong Hour > 2019-04-17 13:33 | Report Abuse

hahaha

Posted by birkincollector > 2019-04-18 08:15 | Report Abuse

so after climax two days ago...now gone back to sleep? lol

Posted by i38888 > 2019-04-18 10:08 | Report Abuse

Slow and steady

Posted by birkincollector > 2019-04-18 15:05 | Report Abuse

Hmm..capped at 0.58

Posted by member41 > 2019-04-18 16:10 | Report Abuse

61 again... music starting?

Posted by smarty86 > 2019-04-18 16:10 | Report Abuse

price piking up

Posted by i38888 > 2019-04-18 16:19 | Report Abuse

Nice

Posted by nich0las > 2019-04-18 16:29 | Report Abuse

What news? Goh Siang get kick from Company ya? haha

Posted by SWT1988 > 2019-04-18 16:56 | Report Abuse

Closing 6.20. Over bought??

Posted by Ho Sook Ching > 2019-04-18 17:02 | Report Abuse

So tomorrow should up again

Posted by rivter > 2019-04-18 17:17 | Report Abuse

tomorrow q at 0.61 0.60 0.59 200lot sure can get some $$$

Posted by birkincollector > 2019-04-18 17:30 | Report Abuse

Sold hope not suddenly announce good news lol

Posted by John Lu > 2019-04-18 21:26 | Report Abuse

Bentong Chan sifu aleady told u all PE fund eyeing controlling stake at 80c to rm1

Posted by John Lu > 2019-04-19 09:39 | Report Abuse

Power... 70c soon

Posted by SWT1988 > 2019-04-19 12:45 | Report Abuse

Going down below 0.60 today??

Posted by Lee Yong Hour > 2019-04-19 12:53 | Report Abuse

Keep buying

Posted by Investsucess > 2019-04-19 15:02 | Report Abuse

Price rose too fast ,0.43-0.62 correction

Posted by John Lu > 2019-04-19 15:24 | Report Abuse

I add alot

Posted by shpg22 > 2019-04-19 15:28 | Report Abuse

Fundamental remained weak. Recent price movement by speculative call. Fair price remained unchanged at 0.385.

Posted by Lee Yong Hour > 2019-04-19 15:58 | Report Abuse

Do not scare.

Posted by Lee Yong Hour > 2019-04-19 16:08 | Report Abuse

GOOD

Posted by HoselGoh > 2019-04-19 16:14 | Report Abuse

Go go go. Potential rebound later.

Posted by Investsucess > 2019-04-19 18:32 | Report Abuse

Better change to econpile or ekovest, safest stock monday will fly

Posted by Godofgambler > 2019-04-19 18:51 | Report Abuse

Yes... Change to Econpile or Ptrans

Posted by Ho Sook Ching > 2019-04-19 19:30 | Report Abuse

I already change to iwcity

Posted by TATOWER > 2019-04-20 22:56 | Report Abuse

over sold likely to rebound strongly !

Posted by Zenithopia > 2019-04-21 09:33 | Report Abuse

Right

Posted by kyy_superinvestor > 2019-04-22 08:05 | Report Abuse

No one mentioned about ah pek one...kekekek

Posted by geraldt9 > 2019-04-22 11:22 | Report Abuse

turbochart Hope next election faster come. I want Bossku become our PM again!! .... why the lust or obsession with PM@Penyamun Msia ..?

Posted by UntrustedLove > 2019-04-22 16:11 | Report Abuse

its dying already..

Posted by VenFx > 2019-04-23 15:22 | Report Abuse

Moving again !
Another Malaysia proud after musang king.

Tun M shud help karex to promote to China

Posted by VenFx > 2019-04-23 15:26 | Report Abuse

Karex may employ China You tuber to promote its own brand.