SCIENTEX ON SOLID GROWTH TRAJECTORY
Firm posts record-breaking performance on back of double-digit expansion in manufacturing and property segments
SCIENTEX Bhd’s manufacturing and property development segments have pushed the company onto a solid growth trajectory, with its fourth quarter revenue nearing the RM1 billion mark.
The company’s range of flexible plastic packaging solutions has increased following its recent acquisitions of Mega Printing & Packaging Sdn Bhd as well as a 61.9 per cent stake in subsidiary Daibochi Bhd.
“The acquisitions have reaffirmed our growth path as we stake a larger claim in the global and regional arenas.
“Our property development segment continues to shine, underpinned by resilient demand for affordable homes in Peninsular Malaysia,” said managing director Lim Peng Jin in a statement yesterday.
Scientex’s net profit rose 60.8 per cent to RM133.4 million in the fourth quarter ended July 31, the first time its quarterly net profit exceeded the RM100 million mark.
The packaging manufacturer and property developer said revenue in the same period rose 30.3 per cent to RM938.77 million from RM720.72 million a year earlier.
“Scientex has bucked the trend to report a record-breaking performance, propelled by doubledigit expansion through organic growth initiatives and strategic inorganic measures, amid the prevailing market doldrums in the domestic and international arena.
“Our manufacturing segment has grown from strength to strength, driven by our prowess in product innovation and manufacturing efficiency.
“As for the property segment, Scientex is well-geared towards achieving its vision of delivering 50,000 affordable homes by 2028,” said Lim.
For the 12-month financial period, Scientex scaled a new billion-ringgit mark as its revenue jumped 24.8 per cent to RM3.2 billion from RM2.6 billion a year ago.
Net profit rose 17.3 per cent to RM333.7 million compared with RM284.5 million previously.
The manufacturing segment posted a 23.8 per cent jump in revenue to RM2.4 billion in the financial year 2019 from RM1.9 billion a year ago.
This was attributed to an organic growth in sales at its existing operations, contributions from newlyacquired businesses and higher utilisation rate across all of its businesses.
The property segment reported a 27.4 per cent growth in revenue to RM889.6 million for the financial year from RM698.2 million a year ago, under s c oring s t rong dem and and stable progress billings for its affordable property offerings in Johor, Melaka, Selangor and Perak.
In line with its positive performance, Scientex has proposed a final dividend of 10 sen a share, which will be tabled for shareholders’ approval during its annual general meeting.
Lim said both the manufacturing and property development segments were expected to perform resiliently in the current financial year.
“In the manufacturing segment, we are targeting higher sales of flexible plastic packaging in the domestic and export markets and expect enhanced efficiency at Daibochi in the coming quarters.
“In line with the rising demand for affordable homes in Peninsular Malaysia and the strong take-up of our launches, we are targeting larger scale launches worth RM1.3 billion in gross development value in financial year 2020,” said Lim.