Scientex 1Q23 grows 4% to RM107m

SCIENTEX Bhd’s net profit rose 4.2% to RM107.2 million in the first quarter ended Oct 31, 2022 (1Q23), from RM102.9 million in the previous corresponding quarter.

The better earnings performance was driven by revenue growth of 11% to RM1 billion from RM928.2 million previously, on healthy contributions from its packaging and property divisions.

Earnings per share increased to RM6.91 in the current quarter from RM6.63 sen a year ago.

“Scientex is achieving sustainable growth, as we simultaneously generate economic profits alongside community development and environmental preservation, undergirded by a culture of innovation,” Scientex CEO Lim Peng Jin said in a statement today.

At the group’s AGM today, its shareholders approved a final dividend of five sen per share in respect of financial year 2022 (FY22). Together with an earlier paid interim dividend of four sen per share, the estimated total dividend payout of RM139.6 million constitutes 34.1% of FY22 net profit.

The ex-date of the final dividend would be on Dec 23 2022, with payment date on Jan 9, 2023.

Scientex’s packaging division registered 5.6% revenue growth to RM716 million from RM678.1 million previously, on firm consumer packaging demand in South-East Asia and Oceania, mitigating lower industrial packaging sales as global customers remained cautious on trade sentiment.

Meanwhile, the property division posted a 25.5% higher revenue of RM313.9 million versus RM250.1 million previously, driven by healthy construction progress for the group’s affordable property developments across Peninsular Malaysia, as well as strong demand for new affordable homes launches in Tasek Gelugor in Penang, Jasin in Melaka, and Pulai and Kota Tinggi in Johor.

Commenting on the group’s outlook, Lim said global uncertainties and elevated operating costs caused by supply chain disruptions and elevated inflation remain key themes and could affect global packaging demand in the near term.

“Notwithstanding these, Scientex continues to strengthen its operational and supply chain efficiencies, as well as upgrade its capabilities to maintain competitiveness. Furthermore, the company remains on track in its expansion plans which are tailored for longer-term growth,” he said.

In its property division, he added that the group has lined up several new phases of launches across its developments in Peninsular Malaysia which will leverage on its strong branding, affordable pricing and strategic locations.

“We expect stable demand for our affordably priced homes and are undertaking cost management initiatives to address higher construction costs,” he said.

Scientex’s share price rose to a high of RM3.81 an hour after the opening bell today before settling to RM3.38, or a gain of 0.6% or two sen, at the midday break. — TMR