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KUALA LUMPUR (Dec 17): Scientex Bhd's net profit rose 50.9% to RM80.96 million for its first financial quarter ended Oct 31, 2019 (1QFY20) from RM53.67 million a year ago, mainly due to better sales performance achieved from both the manufacturing and property divisions.
This resulted in a higher earnings per share of 15.71 sen for 1QFY20 compared with 10.98 sen for 1QFY19.
Revenue for the quarter grew 22.9% to RM877.37 million from RM713.64 million a year ago.
In a bourse filing today, the packaging manufacturer and property developer said its manufacturing revenue for 1QFY20 rose 13.9% year-on-year (y-o-y) to RM655.9 million, on higher utilisation rate of the manufacturing plants, as well as the contribution from the group’s newly acquired converting business.
Its property revenue for the quarter also increased 60.7% y-o-y to RM221.5 million, mainly contributed by better sales and steady progress billings from its development projects in Johor, Melaka and Selangor, particularly Taman Pulai Mutiara, Taman Senai Utama, Taman Scientex Rawang and Taman Scientex Durian Tunggal.
In a separate statement, Scientex managing director Lim Peng Jin said its growth in 1QFY20 has established a firm foundation to sustain its performance in FY20.
"In the manufacturing segment, the consolidation of the converting business through the acquisitions of Daibochi Bhd and Mega Printing & Packaging Sdn Bhd catapults Scientex’s progress to become an integrated producer of customised and niche flexible plastic packaging products.
"On top of the higher margin product mix, these end-to-end capabilities enhance our ability to fulfill increasing demand for sustainable packaging agenda," he said.
The group is expecting the coming financial year to be a relatively stable year for its manufacturing division.
Meanwhile, Lim said the property development division aims to launch RM1.1 billion worth of new properties in FY20.
"The segment is headed for steady growth backed by our continuous landbanking exercise, the most recent being the new landbanks in Tasek Gelugor, Penang, Kundang, Selangor and Kota Tinggi, Johor which bring our total landbank in Peninsular Malaysia to be close to 4,000 acres and thus, last for more than 10 years,” he said.
The group has landbank in Johor, Melaka, Selangor, Perak, and Penang. Scientex specialises in building affordable homes, and to date, has built more than 18,500 of its targeted 50,000 units to be completed by 2028.
Scientex said it expects demand for this housing segment to remain relatively strong for the coming financial year.
“Our goal is to build businesses that are adaptable to users demand and thus, imbue greater resilience into Scientex. We have laid the solid platform of growth and strive for the next catalyst to new heights,” said Lim.
At 2.33pm, Scientex shares were down 10 sen or 1.02% at RM9.70, bringing a market capitalisation of RM5 billion.
