KAREX

KAREX FLYING HIGH

Established in Malaysia around 1988. Started with manufacturing high quality natural rubber latex condoms and other latex dipped product. Currently managing over 15% of the world’s condom market. Karex is one of the global leaders in the condom manufacturing.

Karex, can be consider as

one of the best performer of IPO in Bursa Malaysia this year. Until today, Karex raised up to 50% from their IPO price of Rm 1.85, roughly it equal to Rm 1.00 of profit. This huge amount of profit surely put a big smile to investor of Karex and great amount of jealousy to investor that skeptical on IPO (after disastrous case of Astro and AAX).

From my point of view, when there is too much of advertising and exaggerating, the performance of IPO will be bad. Sometimes we need to be contrarian in choosing IPO. This theory can be related to Dow Theory: The three phases of primary trend.

Karex is good for long term investment because:

This industry expected to grow 7.4% annually over the next four years, due to

        I.            *Population growth

      II.            *Rising incidences of unwanted pregnancies and sexually transmitted diseases

    III.            *Shortage of condom

Karex have significant cost advantages over their rivals due to:

        I.            *Located in Malaysia and Thailand, world largest rubber producing countries.

      II.            *Located in Asia Pacific region, accounts for 49% of global condom sales.