KUALA LUMPUR (Sept 20): Scientex Bhd reported a 22% rise in its fourth quarter net profit at RM88.29 million, from RM72.13 million a year earlier, as revenue increased on better sales from its manufacturing division. Scientex's manufacturing division includes stretch film production.

In a statement to Bursa Malaysia today, Scientex said revenue increased to RM733.15 million in the fourth quarter ended July 31, 2018 (4QFY18), from RM646.07 million a year ago. For the full year (FY18), Scientex said net profit rose to RM289.81 million from RM255.87 million, while revenue was higher at RM2.63 billion versus RM2.4 billion in FY17. 

"The increase in (4QFY18) revenue was contributed by better sales from the manufacturing division. The group operating profit was RM108.2 million, an increase of 26.5% compared to RM85.5 million in the preceding year's corresponding quarter.

"The stronger U.S. economy holds great promise for the group’s stretch film operations, as the new stretch film manufacturing facility in Phoenix, Arizona began operations in January 2018. The group expects to see this plant making positive contributions in the coming years, as it gradually ramps up production capacity to meet huge demand in the U.S. and the Americas. 

The group has plans to expand its market presence in the U.S. and the Phoenix plant is expected to play a pivotal and strategic supporting role in future, with its close proximity to its U.S. customers and its sources of raw materials," the statement said.

In Malaysia, Scientex also develops properties. The group said it is confident demand for its affordable housing will remain strong and resilient in the foreseeable future, barring any unforeseen circumstances.

In separate statements, Scientex said the company proposed a final dividend of 10 sen a share for 4QFY118, bringing full-year dividends to 20 sen a share.

Scientex said the 10 sen dividend's ex and payment dates are on Dec 26, 2018 and Jan 18, 2019 respectively. "The single-tier final dividend of 10 sen per ordinary share is subject to shareholders' approval at the forthcoming annual general meeting of the company," Scientex added. 

Today, Scientex shares rose three sen or 0.36% at 12:30pm to settle at RM8.26, with 168,900 units traded. The stock was traded between RM8.33 and RM8.26 so far today.