KUALA LUMPUR (Sept 19): Scientex Bhd’s net profit jumped 33.24% to RM72.13 million for the fourth quarter ended July 31, 2017 (4QFY2017), from RM54.14 million a year ago, thanks to strong performance of its packaging and property development division.

This is the best ever quarterly performance in its corporate history, said the global packaging manufacturer and property developer in a statement today.

Revenue jumped 15.15% to RM646.07 million, from RM561.06 million in 4QFY2016, on the back of a 20.1% increase in export sales of packaging-related products. This was further supported by the good take up rate of its property projects, as well as strong progress billings across its developments projects, particularly in Taman Pulai Mutiara, Johor.

Scientex managing director Lim Peng Jin said the group’s venture into the consumer packaging since 2013 “has paid off tremendously”.

“Today, our consumer packaging operations contribute 50% or more of total manufacturing revenue, with exports exceeding that of domestic sales. Furthermore, we have just completed the expansion of our consumer packaging polyethylene plant in Ipoh in August 2017, while our new stretch film facility in Arizona, United States, is on track to commence operations in early 2018,” Lim said.

These new capacities would spur the growth trajectory in the manufacturing segment and is expected to contribute positively to the group’s performance in FY2018 onwards, Lim added.

Scientex’s full year net profit for FY2017 rose 6.23% to RM255.87 million, from RM240.87 million in FY2016, as revenue grew 9.19% to RM2.4 billion, from RM2.2 billion.

In line with strong annual earnings, Scientex declared a final single-tier dividend of 10 sen per share, bringing total payout for FY17 to 16 sen per share or RM77.4 million. This is equivalent to 30.2% of the net profit chalked in FY2017, Scientex said, which is consistent with its policy to pay out at least 30% of the annual net profit to shareholders.

As at end-July, Scientex said it had launched property projects worth RM616.9 million in gross development value (GDV), while unbilled sales stood at RM500 million, giving it an earnings visibility over the next two to three years. 

On near-term prospects, Lim said Scientex is eyeing continued growth in both its manufacturing and property operations.

We have made successful inroads in marketing our new products in the consumer packaging business, such as our biaxially oriented polypropylene (BOPP) and cast polypropylene (CPP) films. This would contribute towards accelerated growth in the manufacturing segment, as we ramp up production to meet growing demand,” Lim said.

Turning to the property segment, Lim said the group will continue to target new opportunities in the resilient affordable housing sector.

“In light of the encouraging prospects, we have continued to expand across peninsular Malaysia, beyond our stronghold in southern peninsular such as into the Klang Valley region, and are targeting to launch approximately RM800 million worth of new developments in FY2018,” he said.

At 3.07pm, Scientex shares were trading at RM8.63, giving it a market capitalisation of RM4.19 billion. — theedgemarkets.com

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