KUALA LUMPUR (Mar 23): Scientex Bhd posted a net profit of RM36.05 million net profit in its second quarter ended Jan 31, 2015 (2QFY15), up 6% from RM33.92 million a year earlier. Profit growth came on higher sales at its packaging-product manufacturing and property development segments.

In a statement to the bourse today, Scientex (fundamental: 1.70; valuation: 2.40) said revenue grew to RM462.87 million from RM383.49 million.

“2Q15 manufacturing segment revenue rose 13.3% to RM327.0 million from RM288.5 million previously, on higher sales of industrial and consumer packaging products,” Scientex said.

The group said its property segment recorded 43% revenue growth, attributed to higher recognition of sales from on-going projects, and a sturdy uptake of new residential launches in Senai and Pasir Gudang in Johor.

For 1HFY15, Scientex’s net profit climbed to RM66.32 million from RM63.26 million a year earlier. Revenue came in higher at RM893.94 million compared with RM748.3 million.

Scientex said it was optimistic that global demand for its high quality packaging products would continue to rise.

The firm has factories in Malaysia and Vietnam as well as sales and marketing arms in Japan, Indonesia, and Singapore. Approximately 75% of its manufactured products are exported to over 60 countries worldwide.

In Malaysia, Scientex is mindful of the goods and services tax (GST), which will be implemented starting April 1 this year.

The company said it expected the GST to result in costlier construction materials for its property business.

Scientex said, "the imposition of GST will probably lead to a slight increase in prices of construction materials leading to higher prices. However, it is not expected to dampen demand for products in the affordable housing range which the group expects to remain resilient.”

At 3:18pm, Scientex shares were traded four sen or 0.6% lower at RM6.62 for a market capitalisation of RM1.5 billion.

A total of 138,900 shares changed hands.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)