For 6MFY19, Scientex's core earnings grew a slight 0.6% y-o-y to RM132mil due to weaker 1QFY19 earnings.
However, the research house expects property contribution to accelerate in 2HFY19 due to the resolution of the approvals issue, the target GDV of RM600mil and unbilled sales of RM600mil.
"As such, we deem the results to be broadly within street (40%) and our (44%) full-year estimates," it said.
In 2QFY19, Scientex's core earnings surged 22% year-on-year (y-o-y) to RM75mil on a quarterly record-high revenue.
The group's property segment expanded 21.6% y-o-y to RM64.9mil due to stronger progress billing recognised from its projects following the longer-than-expected approvals from the authorities in 1QFY19.
Meanwhile, the manfacturing segment grew 23.4% y-o-y to RM39mil on continued demand from the export and domestic markets.
Affin Hwang also highlighted that Scientex's mandatory takeover offer for Daibochi has become unconditional.
The consideration will be satisfied by either cash option with an offer price of RM1.59 or share exchange option with an exchange ration of 5.535.
The offer will be open for acceptance until April 1, 2019, with the MGO expected to be completed by the end of that month.
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