Karex currently has 3 factories at Pontian, Port Klang and Hat Yai. Manufacturing facilities in Hat Yai commenced operation in 2006 and will receive 13 years of tax incentives for condoms manufactured there. It will enjoy 8 years 100% tax free (2006-2013) and 5 years 50% tax exemption (2014-2018). This means it will start to pay some tax next year.
From year 2011 to 2013, Karex's net profit and profit margin increase tremendously. However, I am not sure why its margin in year 2010 was so high.
If Karex can maintain its profit growth of 2012-2013 (140%), then it will be excellent.
Karex does not have fixed a dividend payout policy. If it pays 50% of net profit in 2013 as dividend, this will be 5.4 sen per share, or 2.9% dividend yield at RM1.85.