Scientex aiming to expand property footprint

Scientex Bhd property division chief operating officer Datuk Alex Khaw Giet Thye

PETALING JAYA: Scientex Bhd aims to acquire more land in high-potential regions across Peninsular Malaysia with substantial demand for affordable homes.

Scientex property division chief operating officer Datuk Alex Khaw Giet Thye said the expansions will allow the group to meet housing demands of local communities while ensuring sustainable growth of the company’s property division.

“Our “cross border” expansion strategy is aimed at expanding our property development footprint across Peninsular Malaysia.

“We started off with projects in Johor and progressively expanded northward to include Melaka, Negri Sembilan, Selangor, Perak, Penang, and Kedah in the past few years,” he told StarBiz.

Khaw said Scientex has an extensive lineup of new affordable home developments planned for the current financial year ending July 31, 2024 (FY24).

“These projects span seven different states, covering our existing townships, including the latest phase of our Pulai township, as well as new locations in Cheras and Jenjarom in Selangor and Ipoh in Perak.

“Additionally, our ongoing new land acquisitions in Kulai and Tebrau, Johor, are expected to commence development activities in mid-2024, with launches targeted for FY25.”

Khaw said these developments are a significant expansion of Scientex’s presence and will contribute to meeting the growing demand for affordable homes.

In the past 24 months, Khaw said all of Scientex’s townships in Peninsular Malaysia have witnessed substantial growth, driven by the rising demand for affordable homes among Malaysians.

“This demand arises from the need for quality and accessible housing options, making affordable homes a vital necessity for local communities.

“The robust trend we have experienced reaffirms our confidence in the continued strength of the affordable housing market in 2024.”

Apart from property development, Scientex is also a producer of stretch film and a leading player in the flexible plastic packaging industry.

For its fourth quarter ended July 31, 2023, Scientex posted a net profit of RM114.89mil as compared to RM124.98mil a year before.

This brought its earnings per share to 7.41 sen as compared to 8.06 sen previously. The group’s revenue stood at RM1.07bil from RM1.11bil in the same quarter in 2022.

According to the group’s filing with Bursa Malaysia, packaging revenue dropped to RM619.7mil from RM740.8mil in the previous corresponding quarter due to the lower demand.

Operating profit fell to RM24.3mil from RM62.6mil. This was mainly owing to the lower sales and rising operating cost, especially energy cost.

During the quarter, the group also made an impairment of goodwill amounting to RM22.7mil in relation to its Myanmar operations.

For the entire 12-month period, Scientex posted a net profit of RM438.14mil, an improvement from RM409.87mil in the previous year.

Revenue, meanwhile, grew to RM4.08bil from RM3.99bil.

Khaw said Scientex’s property division achieved a record high revenue of RM1.45bil and secured sales of more than 6,000 affordable houses in FY2023.

“This accomplishment underscores the substantial demand for affordable homes, which continues to drive our positive outlook.

“We are optimistic about surpassing last year’s strong performance.”

Khaw emphasised that Scientex is committed to providing highly sought-after affordable landed homes across its 30 townships in Peninsular Malaysia.

“Our development portfolio includes highly in-demand double-storey terrace homes and shop lots that complement our township offerings.

“Our dedication to customising projects to meet the unique needs of local communities resonates strongly with prospective buyers, as we strive to fulfil the housing needs of the Malaysian public,” he said.