Scientex plans to launch RM600m properties after firmer H1 earnings

Scientex managing director Lim Peng Jin: "The group is also looking to launch RM600mil worth of new properties for 2H18 to cater to increasing demand for affordably priced homes in the country."

KUALA LUMPUR: Scientex Bhd reported an improved set of financial results in the first half and plans to lauch RM600mil of new properties, mainly affordable priced homes, in the second half of FY ending July 31, 2018.

The global packaging manufacturer and property developer announced its earnings in the second quarter ended Jan 31, 2018 (Q2 FY18) rose 4.2% to RM67.98mil from RM65.19mil a year ago.

The increase in earnings was due to the higher manufacturing segment including  flexible plastic packaging (FPP) business

Its revenue increased by 8.2% to RM634.75mil from RM586.25mil. Earnings per share were 14.05 sen compared with 14.09 sen.

The manufacturing segment saw export contribution rise 16.2% to RM354.90mil in Q2 FY18 from RM305.40mil previously.

Scientex’s property development segment revenue grew 2.3% to RM178.3mil in 2QFY18 from RM174.3 million last year, attributed to resilient demand for the Group’s on-going affordable developments in Johor, Melaka and Perak.

In the first half, its earnings climbed 19.7% to RM140.38mil from RM117.25mil in the previous corresponding period on increasing contribution from the manufacturing and property development. Its revenue was up 15.4% to RM1.29bil from RM1.12bil.

Scientex managing director Lim Peng Jin said: “Our manufacturing segment performed commendably as we stamped our mark with more orders from our regional clientele and recorded steadily increasing capacity utilisation. 

“The sustained growth validates the recently completed expansions to our capacity and product range, which allows us to capture more opportunities in the increasing global FPP market especially in high-growth Asia,” he said.

Lim said the upcoming integration of Klang Hock Plastics Industries into its operations would enhance its edge in the global FPP market. 

“We also stand to benefit from great synergies such as in operational efficiency and product innovation initiatives.”

On prospects for the near term, Lim said the group was eyeing continued growth in both its manufacturing and property operations in FY2018.

“For our manufacturing segment, we are confident of achieving stronger performance going forward, buoyed by increasing global demand. We have made commendable progress in securing new customers and larger orders thus far, and are poised to fill up our capacities for the rest of the year,” Lim said.

“Also, with our property development segment noting encouraging new sales performance. The group is also looking to launch RM600mil worth of new properties for 2H18 to cater to increasing demand for affordably priced homes in the country,” Lim continued,” he added.