Scientex 1Q net profits up 3.1 % to RM30.26mil

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KUALA LUMPUR (Dec 17): Scientex Bhd saw its net profits for the first quarter ended Oct 31, 2014 (1QFY15) increase marginally by 3.1% to RM30.26 million, from RM29.34 million in the same quarter a year ago, which the group attributed to higher sales in its manufacturing and property segments.

In a filing with Bursa Malaysia today, Scientex announced an 18% increase in revenue to RM431.07 million, from RM 364.81 million a year ago, on higher sales achieved.

Scientex 1QFY15 basic earnings per share stood at 13.69 sen, up 3.2% from 13.27 sen previously.

Manufacturing segment revenue in 1QFY15 rose 10.8% to RM320.3 million, from RM289.2 million previously, on higher sales of industrial and consumer packaging products.

Scientex managing director Lim Peng Jin said while the demand for both industrial and consumer packaging products have remained intact, the group has also noted lower profitability, due to the adoption of a market penetration strategy to establish its presence in new markets across South East Asia.

“We continue to take a long term view of the consumer packaging sector, and are progressing with our expansion plans, [and] in the long run, we expect these expansion efforts to enhance manufacturing efficiency and reflect favourably on our result,” he said in a separate statement today.

Scientex’s property segment recorded a 46.5% revenue growth to RM110.8 million, from RM75.6 million previously, which was attributed to positive uptake of new launches and higher revenue recognition from ongoing developments, including new residential projects in Taman Scientex Senai, Johor Bahru.

“We are optimistic of our long term prospects, and will not only continue to develop innovative products for the needs of diverse buyers, but also emphasise on delivering more affordable housing to meet sustained demand in Johor,” said Lim.

The group’s share price, which was charting at RM5.43 one year ago, closed at RM6.84 today, rising to a market capitalisation of RM1.54 billion.