PETALING JAYA: Analysts expect resilient demand for affordable housing to help anchor Scientex Bhd
’s earnings moving forward.
The group is currently backed by a sizeable 11,000-acre landbank with over RM50bil in gross development value.
With its standardised township model and in-house contracting capabilities, BIMB Securities Research said in a report that Scientex is expected to scale annual sales from about 6,000 units to 8,000-10,000 units over the next few years.
Furthermore, the launch momentum is also expected to strengthen in the second half of financial year 2026 (2H26), with financial year 2026 (FY26) launches targeted at RM3bil compared with RM2.5bil in FY25. This provides stronger progressive billings visibility into FY27 forecast earnings, the research house added.
While the group’s packaging division faces ongoing volatility from raw material prices, logistics disruptions and geopolitical tensions, BIMB Research said improved operational efficiency and a broader supplier base should help mitigate these pressures. The research house maintained a “buy” call on Scientex with an unchanged target price (TP) of RM3.91.
Scientex remains an attractive proxy to Malaysia’s structural affordable housing demand and sustainable packaging solutions, said BIMB Research.
Meanwhile, Kenanga Research analyst Chris Tong said in a note to clients that “we like Scientex for its competitiveness in the global plastic packaging industry thanks to its scale advantage, low-cost structure (especially when compared to its overseas rivals), and continuous strong traction in affordable housing segment, notably in the southern region.”
For its property division, sales of affordable properties should continue to be resilient, given encouraging take-up rates from recent launches. The group’s unbilled sales stood at RM2bil as of the first quarter of FY26 (1Q26) (versus RM1.9bil as of 4Q25).
Kenanga Research also anticipates near-term improvements on the group’s packaging segment due to higher resin prices, which will enable a higher average selling price for its packaging products.
The ongoing US tariff disruptions may also be partially cushioned by its US plant, which is expected to see better margins in the near term, although it accounts for less than 10% of its total packaging revenue.
Kenanga Research, which has an “outperform” rating on Scientex, has raised its TP to RM3.78 from RM3.60 previously.
TA Research, which has a “buy” call on Scientex with a TP of RM5 per share, said the group’s latest 2Q26 results came in within expectations, with 1H26 core earnings of RM280.8mil accounting for 47% of its full-year projections and 49% of consensus estimates.
It noted that the property segment is expected to register double-digit sales growth of approximately 16.8% year-on-year in FY26.
