Karex Bhd (-ve)
TRADING of shares in Karex Bhd (fundamental: 1.45/3, valuation: 1.4/3) triggered our momentum algorithm yesterday for the first time this year. The stock went up six sen or 12.77% to 53 sen yesterday, with 64.81 million shares done, substantially higher compared with the average 3.53 million shares recorded in the past 200 days.
For the second quarter of financial year 2019 (FY19) ended Dec 31, 2018, net profit halved to RM1.4 million from RM3.17 million a year ago due to a less favourable sales mix.
Revenue, however, grew 2.7% to RM113.55 million from RM110.52 million on higher sales from its sexual wellness segment due to more tender orders being shipped out, offsetting a stronger rise in cost of goods sold.
For the first half of FY19 (1HFY19), the group’s net profit fell 54.3% to RM3.37 million from RM7.38 million in 1HFY18, while revenue retreated 5.7% to RM205.71 million from RM218.11 million.