Scientex surges to all-time high on record earnings

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KUALA LUMPUR (Sept 17): Scientex Bhd's share price surged to an all-time high of RM10.38 this morning after it posted a record high annual profit for its financial year ended July 31, 2020 (FY20).

The counter opened higher at RM9.90 and continued to surge to RM10.38 before it pared some its gains at RM10.08 at noon break. Still, it was up 58 sen or 6.11%.

The stock was the top gainer on Bursa Malaysia this morning. Some 1.05 million shares were traded.

Last Friday, the group said its net profit for FY20 grew 17% to RM390.11 million, up 17% from RM333.7 million for FY19, while revenue grew 8% year-on-year to RM3.52 billion from RM3.25 billion. Earnings per share improved to 75.66 sen from 66.66 sen a year ago.  

It attributed the growth to the higher contribution from both its manufacturing and property development segments.

The group also declared a final dividend of 13 sen per share, payable on Jan 13, 2021, three sen more than the 10 sen dividend it declared in the corresponding quarter a year ago. This raised its FY20 dividend payout to 23 sen, from FY19's 20 sen.

Meanwhile, Kenanga Research has maintained its “market perform” rating at RM9.50 with a higher target price of RM10 and said Scientex’s FY20 core earnings of RM407.5 million came in above house estimate at 116%, and 111% of consensus, due to stronger-than-expected top line on lumpier-than-expected property recognition in 4QFY20 after the lull in 3QFY20.

It said the 23 sen dividend for FY20 is also above expectations (117%).

“All in, we increase our FY21E CNP by 3% post capacity expansion plans for its manufacturing segment in FY21 and backed by RM1.3-1.4 billion property sales in FY21-22,” it said.

Surin Murugiah