Scientex robust earnings momentum expected to continue

The research firm noted that Scientex is on track to achieve to achieve a 70% utilisation rate in FY20 from 60% in FY19, which would be driven by a full-year contribution from 61.89% owned Daibochi Bhd and Mega Printing & Packaging Sdn Bhd.

PETALING JAYA: Scientex Bhd’s robust earnings momentum is expected to continue on the back of stronger utilisation rates across its manufacturing plants, which had enabled it to achieve better economies of scale and higher margins.

The company announced on Wednesday that its second quarter ended Jan 31,2020 (2Q20) net profit rose by one third year-on-year (y-o-y) to RM97.47mil, from RM73.75mil previously. Core net profit for 1H20, meanwhile, came in at RM182.6mil, for an increase of 37.2% y-o-y.