{
  "id": 3860530,
  "title": "Karex FY27 earnings poised to surge 452pct on price hikes, nitrile demand",
  "url": "https://urgent.news/2026/08/28/karex-fy27-earnings-poised-to-surge-452pct-on-price-hikes-nitrile",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-28T01:06:21.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/08/1520345/karex-fy27-earnings-poised-surge-452pct-price-hikes-nitrile"
  },
  "original_language": "en",
  "account": "Karex Bhd, a condom manufacturer based in Malaysia, anticipates a significant earnings boost in the financial year 2027 (FY27), as reported by CIMB Securities Sdn Bhd. The positive outlook stems from factors such as a weaker Malaysian ringgit, gradual price hikes, and increased demand for the company's proprietary nitrile condoms.\n\nCIMB Securities predicts Karex's core net profit to soar 452% year-on-year to RM19.7 million in FY27, which is starting from a modest base following a RM3.6 million profit in FY26. This improvement was largely attributable to the eventual refunding of previously refunded US import tariffs in the fourth quarter of FY26, after initially factoring them as recurring costs.\n\nThe gradual ASP increases are expected to become more impactful from the first quarter of FY27, once customers fully adapt to the higher prices. Moreover, the broader adoption of Karex's patented nitrile condoms is anticipated to further propel earnings recovery, aided by additional regulatory approvals and expanded market rollouts. The company aims to expand its presence in nine new global markets by FY27, complementing its existing footprint in 21 markets.\n\nHowever, the company's expansion timeline is expected to be gradual in the first half of FY27, as its original equipment manufacturing (OEM) customer continues to phase out the existing variant while awaiting the launch of a newer product. Restocking is projected to gain momentum in the second half of FY27, underpinned by stronger demand for latex condoms in a worldwide supply chain tightening.\n\nCIMB Securities maintains a \"Buy\" rating on Karex, with a target price of 70 sen, based on 18.8 times the company's FY27 expected price-to-earnings ratio. The recommendation is consistent with the outlook for Karex's long-term earnings recovery, which is expected to be driven by a normalization of ASP, the patented nitrile technology, and the exclusive OEM relationship with a leading global condom brand.",
  "summary": "KUALA LUMPUR: Karex Bhd’s earnings are poised for a sharp recovery in financial year 2027 (FY27), supported by a weaker ringgit, gradual selling price increases and stronger demand for its patented nitrile condoms.",
  "key_points": [
    "Karex's FY27 earnings projected to increase 452% year-on-year",
    "Weaker Malaysian ringgit, price hikes, and nitrile demand driving growth",
    "CIMB Securities rates Karex Buy with RM70 sen target price"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}