Karex earnings outlook remains bright

CGS-CIMB Research says Karex has seen strong recovery in global demand for condoms.

PETALING JAYA: Karex Bhd’s earnings prospects look positive in line with the recovery in demand for condoms, favourable operating environment and new product launches, says CGS-CIMB Research.The research house also expects Karex to post stronger margins, backed by higher economies of scale, a weaker ringgit versus the US dollar and lower operating costs.

In its latest report, CGS-CIMB Research said the winds of fortune, in terms of the operating environment, have begun to blow in favour of Karex.