KUALA LUMPUR (May 28): Karex Bhd saw its net profit rise 31.8% to RM15.21 million or 2.45 sen a share for the third financial quarter ended March 31, 2015 (3QFY15) from RM11.54 million or 1.9 sen a share a year earlier, on sales of higher profit margin products, favourable currency exchange rates and lower raw material prices.

Revenue, however, was 4.3% lower at RM71.4 million from RM74.62 million in 3QFY14 due to higher commercial orders received in the current quarter, resulting in longer lead time for production.

The improved quarterly results pulled the condom manufacturer's cumulative nine months (9MFY15) net profit up to RM42.59 million or 6.96 sen a share, a 90.3% increase from RM22.38 million or 5.5 sen a share a year ago.

Revenue also increased by 39.4% at RM218.53 million from RM156.79 millionin 9MFY14.

In a filing with Bursa Malaysia today, Karex said the demand for condoms remain strong around the world, while the consumption of condom is also expected to rise in tandem with population growth and increasing awareness on the importance of condom usage among the younger generations.

Karex foresees good prospect for its financial year ending June 30, 2015 (FY15) as the group continues to secure new orders on the back of rising demand.

Karex (fundamental: N/A; valuation: N/A) shares fell 1.61% to RM3.05 today, with a market capitalisation of RM2.04 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)