Significant achievement with CE certification for Karex Bhd (Karex) for its new synthetic condoms paves the way for market entry across the European Economic Area.
Kenanga Investment Bank (Kenanga), in its Malaysia Company Update on July 3, 2024, highlighted that the CE certification which validates compliance with stringent EU standards, marks a pivotal moment for KAREX, enhancing its growth prospects in the synthetic condom market, particularly in Europe.
The certification enables KAREX to target a segment driven by increasing demand for latex-free alternatives due to rising allergies.
Maintaining their OUTPERFORM rating, Kenanga underscores KAREX's strong market position, innovative prowess, and strategic advancements, making it an attractive investment amid evolving consumer preferences and post-pandemic recovery dynamics.
Kenanga also noted KAREX's pending FDA approval in the US, which, upon receipt anticipated in 4QCY24, will further expand its market reach and bolster revenue potential in the largest condom market globally.
The global condom market, valued at USD8 billion in 2022, includes a growing segment for synthetic condoms, valued at approximately USD1.4 billion. KAREX's strategic positioning in this niche, alongside its robust OEM partnerships with major brands like Durex, positions it well to capture market share and drive future earnings growth.