Scientex registers RM106.29mil net profit in 2Q on higher property sales

KUALA LUMPUR: Scientex Bhd is exploring opportunities to expand into new markets in Southeast Asia as its property division continues to register robust demand for affordable housing in Malaysia.

"In our property division, the improved authority approval process, gradual easing of labour shortages, and pause in interest rate hike by Bank Negara Malaysia support a better outlook for the sector.

"We are also continuing efforts to enhance resource planning and optimisation to address rising operational costs, as well as greater adoption of Industrialised Building System in our projects,” said CEO Lim Peng Jin in a statement.

Lim said the group is exploring new opportunities in other Southeast Asian markets, which can benefit from its building technology and experience in affordable homes, to meet the demands of the increasing population.

In the second quarter ended Jan 31, 2023, Scientex posted a net profit of RM106.29mil, which compares to a net profit of RM93.69mil in the same quarter last year.

Earnings per share rose to 6.85 sen from 6.04 sen.

The group reported revenue of RM978.39mil, up from RM952.01mil in the comparative quarter.

During the quarter under review, Lim said its property division posted a 24.7% jump in revenue to RM323.3mil on the back of improving sales and healthy construction progress, as well as positive demand for new affordable home launches in Sungai Petani, Kedah.

He added that the property division recorded a strong take-up of RM1.15bil of affordable homes launched in the first half of its 2023 financial year across Johor, Melaka, Selangor, Penang and Kedah.

Meanwhile, the packaging division registered lower revenue of RM655.1mil in 2QFY23 compared to RM692.8mil in 2QFY22 due to lower industrial packaging sales as global buyers remained cautious amid the market volatility.

However, Lim said the group's long-term plans for the packaging division remain intact.

"Our packaging division is committed to improving our cost competitiveness through operating efficiency, which has been our hallmark and success factor in the past decades.

"In addition, we will consistently pursue the development of high-value innovative and sustainable packaging solutions, therefore positioning us well to weather the weaker global demand environment due to ongoing uncertainties,” said Lim.