KUALA LUMPUR (July 24): Affin Hwang Capital Research has maintained its “Hold” rating on Karex Bhd at RM1.55 with a lower target price of RM1.60 (from RM1.90) and said it continues to like Karex’s long-term value proposition as one of the top manufacturers in a growing condom market, with a strategy to extract further value from its budding brands.

In a note today, the research house however said the roadmap to expand its original brand manufacturing (OBM) segment is strewn with challenges while profit margins are likely to remain uninspiring in the interim.

“We remain cautious on Karex’s near-term outlook and await clearer earnings visibility.

“Maintain Hold with a reduced target price of RM1.60,” it said.