Scientex posts RM102.9m in net profit for 1Q22

By TMR / pic by TMR FILE

SCIENTEX Bhd recorded 11.2% higher net profit of RM102.9 million in the first quarter ended 31 October 2021 (1Q22) from RM92.5 million a year ago.

Revenue rose 15.7% to RM928.2 million in 1Q22 from RM802.3 million previously, driven by firm demand for packaging products, and more sales of affordable homes, the company said in a statement today.

The packaging division remained the main revenue contributor at RM678.1 million in 1Q22, growing 16.2% from RM583.8 million previously, on healthy sales of industrial and consumer packaging products in the domestic and export markets.

The property division registered revenue of RM250.1 million, increasing 14.5% from RM218.4 million in the previous year from steady progress billings for ongoing projects and good-take up rate for latest launches in Johor and Penang. Additionally, revenue improved due to completion of several project phases in Rawang, Selangor and Durian Tunggal, Melaka.

“To deliver sustainable growth, we are maintaining expansions in capacity and capabilities of both divisions to reinforce our market position and leadership.

“We continued our ‘Cross Boundary Development Strategy’ for our property development division by lining up new launches in maiden locations of Jasin, Seremban, Cheras, Sungai Dua and Sungai Petani in FY2022. We are also accelerating our pace with a new target to build 8,000 homes a year by FY2023, up from 6,000 homes a year, representing our commitment to bring more affordable homes to the Rakyat on the back of robust demand,” said CEO of Scientex Lim Peng Jin.

Scientex’s existing property developments are situated in Johor, Melaka, Selangor, Perak, and Penang, while maiden launches are expected in Negeri Sembilan and Kedah in the current financial year ending 31 July 2022 (FY2022).

Scientex had, from August to November 2021, completed the acquisitions of 544 acres of land in Johor (Pulai) and Penang (Sungai Dua) for a total of RM431.4 million. The Group is in the process of acquiring an additional 1,211 acres of land in Selangor (Jenjarom) and Johor (Tebrau), for a total of RM725.7 million to be completed in stages from 2022 until 2024.

In its packaging division, the expansion programme undertaken from FY2020 to FY2022 remains on track, with additional investments in new machinery, as well as automation and factory enhancements at our various plants in Selangor, Melaka and Perak.