Scientex rides steady property take-up, township pipeline to stronger 3Q earnings

PETALING JAYA (June 11): Scientex Bhd's property division continued to support group performance in the third quarter ended April 30, 2026 as steady progress on affordable housing townships and resilient take-up helped offset softer quarterly property revenue.

In its Bursa filing, it said the property division's revenue for the nine-month period rose 4.8% to RM1.52 billion from RM1.45 billion a year earlier, with operating profit edging higher to RM429.8 million compared with RM422.1 million previously, supported by ongoing project billings and resilient demand for new launches.

For the quarter alone, property revenue came in at RM487.8 million versus RM495.8 million in the previous corresponding quarter, a marginal 1.6% decline that the group attributed mainly to the timing of several new project launches now scheduled for the coming quarter, while operating profit eased to RM129.5 million from RM143.0 million.

Scientex highlighted that its property arm remains well positioned in the affordable housing segment, underpinned by an established track record and value-driven offerings that continue to draw healthy take-up across ongoing developments. 

The division is building out three major townships in its pipeline — the 528-acre Scientex Melaka in Cheng, Melaka, the 228-acre Scientex SP Astana in Sungai Petani, Kedah, and the 826-acre Scientex Bestari Jaya in Selangor — which collectively are expected to broaden its geographical reach and support medium- to long-term growth.

Construction across existing projects is progressing steadily, with progressive billings providing consistent revenue recognition, while the group continues to scout for landbank that fits its strategic criteria to sustain its development pipeline.

At the group level, revenue for 3QFY2026 inched up to RM1.12 billion from RM1.11 billion a year earlier, but operating profit grew a stronger 14.2% to RM202.8 million from RM177.5 million, lifted mainly by the packaging division's margin recovery. 

Profit before tax improved to RM199.2 million compared with RM176.1 million previously, while net profit rose to RM150.8 million from RM134.0 million, with earnings attributable to shareholders increasing to RM142.2 million versus RM123.9 million in the corresponding quarter.

For the nine months, group revenue was up 2.5% at RM3.41 billion against RM3.33 billion, and operating profit climbed 13.2% to RM599.7 million from RM529.7 million, translating into net profit of RM449.5 million compared with RM401.3 million a year ago and shareholders' earnings of RM420.3 million versus RM376.4 million.

Net assets per share strengthened to RM2.83 as at April 30, 2026 from RM2.65 at end-July 2025. The group held RM155.0 million in cash and cash equivalents against total borrowings of RM2.18 billion, comprising RM1.06 billion in long-term sukuk and RM1.12 billion in short-term trade financing, and generated RM379.9 million net operating cash flow in the nine-month period.

The board declared a single-tier interim dividend of 6 sen per share for the financial year ending July 31, 2026, unchanged from the previous year's interim payout and payable on July 17, 2026, while guiding that both the packaging and property divisions are expected to deliver satisfactory results for the full year.

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