PETALING JAYA: Scientex Bhd
remains on track to deliver earnings growth in the financial year ending July 31, 2026 (FY26), supported by continued resilience across both its property and manufacturing segments.
TA Research said the group’s RM2.1bil launch pipeline targeted for the second half of FY26, coupled with encouraging take-up rates and RM2bil of unbilled sales, should provide earnings visibility.
Meanwhile, the manufacturing division is expected to remain resilient amid a volatile operating environment, it said.
The group’s diversified supplier base and dynamic pricing strategies should help safeguard supply continuity while mitigating potential cost pressures in the second half of this year, it said, adding that these measures are expected to support margin sustainability, despite ongoing uncertainties surrounding raw material prices and global trade conditions.
TA Research also said Scientex’s third quarter ended April 30, 2026 (3Q26) results were within expectations, and its nine-month FY26 core earnings of RM424.5mil accounted for 73% of both its and consensus’ full-year estimates.
The company reported a stronger 3Q26 net profit of RM142.17mil, up 14.8% year-on-year (y-o-y), as higher operating profit from its packaging business offset weaker contributions from the property segment.
For the period under review, revenue rose 0.66% y-o-y to RM1.12bil.
Operating profit from the packaging segment more than doubled to RM73.2mil, helped by improved market sentiment, better margins and an optimised product mix.
TA Research has maintained its “buy” call on the stock with an unchanged target price of RM4.82 per share. At last look, it was at RM3.75.
RHB Research in its report said it expected a steady 4Q26, underpinned by a relatively healthy property outlook and continuous improvement in the packaging segment, although it remained wary of the potential inflationary pressure and overall higher raw material costs, which may lead to subdued demand for both segments.
It suggested investors take a neutral stance for now, amid the current geopolitical risks.
RHB Research said while the company expects demand for the packaging segment to gradually recover, it maintains a cautious outlook amid elevated resin costs, as crude oil prices are now ranging between US$90 and US$100 per barrel.
While it is most likely to pass on the incremental cost to its customers, we may see a margin compression in the near term due to a time-lag issue, it said, adding that it was maintaining its earnings before interest and tax margin assumption of 6.4% in FY26 to FY27, for now.
It also noted that Scientex now had three new township developments in its pipeline.
