Scientex net profit rises to Rm141mil in 2Q, EPS up to 9.09 sen

KUALA LUMPUR: Scientex Bhd reported a higher bottom line of Rm141.01mil in the second quarter ended Jan 31, 2024 (2Q24), up from Rm106.29mil in 2Q23, while earnings per share (EPS) rose to 9.09 sen from 6.85 sen.

In a filing with Bursa Malaysia, the group reported revenue of Rm1.09bil, up from Rm978.39mil previously on the back of improved contribution from the property segment.

Scientex said it saw softer export demand for its packaging products in the quarter under review, bringing its packaging revenue lower to Rm635.8mil in the first half of financial year 2024 (1H24), compared with Rm655.1mil in 1H23.

However, operating profit was higher at Rm64mil compared with Rm58.3mil in the year-ago quarter, mainly due to initiatives implemented to enhance competitiveness as well as product mix.

Meanwhile, Scientex said its property segment saw a 41.3% surge in revenue to Rm323.3mil in 2Q24.

“The higher revenue was contributed by steady construction progress for all developments in northern, central and southern Peninsular Malaysia.

“In addition, our new launches in Sungai Dua (Penang), Sungai Petani (Kedah), Ipoh (Perak), Jasin (Melaka) and Pulai (Johor) also received overwhelming responses and further contributed to the increase in revenue,” it said.

In tandem with the higher revenue recorded, operating profit increased to Rm127.3mil in 2Q24 compared with Rm89.1mil in the year-ago quarter.

Over the six-month period, Scientex’s net profit was Rm278.85mil against Rm213.47mil in 1H23, while revenue had grown to Rm2.2bil from Rm2.01bil over the comparative period.

On its outlook, chief executive officer Lim Peng Jin said in a statement the group is focusing on the packaging division’s core for driving sustainable growth and is optimistic of sustaining the division’s performance.

“We are committed to enhancing operational efficiency and prioritising cost, quality and delivery to our customers, thereby improving our competitive edge.”

He added that the ongoing implementation of solar photovoltaic systems across its factories in Malaysia will help offset high energy costs and advance environmental sustainability initiatives.

“In the property division, robust demand for affordable properties continues to underpin growth, with notable take up across our new launches nationwide,” Lim said.