Scientex 1Q net profit jumps 47.3% to RM19m

KUALA LUMPUR: Scientex Bhd saw its net profit jump 47.3% to RM19.07 million for its first quarter ended Jan 31, 2011 (1Q) from RM12.94 million a year ago on higher revenue.

Revenue expanded 22.7% to RM194.88 million from RM158.7 million, while earnings per share (EPS) rose to 8.86 sen from 6.01 sen, it announced to Bursa Malaysia on Tuesday, Mar 15.

For the first half ended January 31, 2011 (1H), the group saw its net profit grow by 40.6% to RM36.08 million from RM25.66 million a year ago.

The strong performance was on the back of a 17.9% increase in revenue to RM381.5 million from RM3223.63 million. EPS rose to 16.75 sen in 1H from 11.92 sen.

Scientex, which manufactures industrial packaging and develops real estate, attributed the growth in profit mostly to higher contributions from its high-end property segment.

"Contributions from our property segment in the first half were mainly from our Taman Mutiara Mas project in Skudai, Johor, that is catered to complement the lifestyles of discerning consumers," said managing director Lim Peng Jin in a statement.

"We believe that the increasing demand for the first phase of this project indicates that this is a timely venture in line with rising affluence in the vicinity. Furthermore, its proximity to Iskandar Malaysia enables us to leverage on the rapid development and growing vibrancy in Skudai," he added.

Taman Mutiara Mas is a RM754 million mixed development spanning 145 acres.

Lim said the group plans to adopt a similar model to its Skudai development following its performance.

The group has four property development projects with a total gross development value (GDV) of RM2.1 billion which is expected to keep it busy until 2019.

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