Scientex posts lower Q3 net profit of RM62.5m

The 20-year contract secured by its unit Metro Parking Management Philippines Inc would also include the construction of an additional 208-bays of steel deck parking structure in MBP - a bustling business hub in the affluent suburb near Alabang Town Centre, one of Metro Manila

KUALA LUMPUR: Scientex Bhd's net profit in Q3 ended April 30 came in 8% lower at RM62.5mil from RM67.42 in the year-ago quarter on the back of 5.6% lower revenue of RM600.18mil.

The group said in a stock exchange filing that the decrease in revenue and profit was due to lower contribution from the property division as its recently launched projects were still in the early stages of progress billings.

"The reduction in revenue and profit from operations were mainly due to slower progress billings from our latest projects launched in Taman Scientex Durian Tunggal, Melaka and Scientex Meru which were all in early stages of construction progress. 

"The division was also impacted by longer-than-expected timeframe in attaining regulatory approvals and permits for some of the projects due to uncertainty during the election period," it said.

Scientex's manufacturing division saw a marginal revenue increase of 2.1% to RM452.1mil due to higher contribution from export sales of its flexible packaging products.

"Total export sales, which accounts for 77% of the total manufacturing revenue, have seen positive growth after the Group’s expansion in its manufacturing capacity were put in place," it said.

Profit from operations increased to RM34.3mil from RM25.2mil in the year-ago quarter owing to better product mix and margins.

Year to date, the group posted 9.5% higher net profit of RM201.52mil, and revenue of RM1.89bil, 7.8% over the year-ago period.

Moving forward, Scientex says its new stretch film manufacturing facility in Pheonix, Arizona, in the US is expected to make positive contributions as it ramps up production to meet huge demand in the US.

With regards to its property division, the group expects resilient demand for affordable housing post GE14 and will continue to build more homes in this segment.