Scientex’s 3Q net profit jumps 57.81% to RM109.9m on record revenue, declares 4 sen dividend

Scientex’s 3Q net profit jumps 57.81% to RM109.9m on record revenue, declares 4 sen dividend
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KUALA LUMPUR (June 23): Scientex Bhd’s net profit for the third quarter ended April 30, 2021 (3QFY21), jumped 57.81% to RM109.88 million, from RM69.63 million a year ago, on the back of record high revenue.

Earnings per share rose (EPS) to 7.09 sen from 4.50 sen in the corresponding quarter last year.

Its quarterly revenue rose 26.49% to RM976.8 million, from RM772.23 million a year ago, on higher contributions from packaging and property development segments, its filing to Bursa Malaysia showed.

The group has declared an interim dividend of 4 sen, payable on July 23.

According to the group, the packaging segment constituted the majority RM671.5 million of 3QFY21 revenue, increasing 9.3% from RM614.4 million previously on increased sales of flexible plastic packaging to domestic and export markets.

Meanwhile, the group’s property development revenue doubled to RM305.3 million in 3QFY21, from RM157.8 million previously on increased homebuilding activities, compared with the lockdown-impacted corresponding quarter last year.

The group noted, the improved property development contribution was catalysed by stronger progress billings from ongoing developments across various states, comprising projects worth RM2.4 billion in gross development value.

This was complemented by strong take-up rates across five new projects launched in 3Q21, at Scientex Tasek Gelugor in Penang, Scientex Kundang Jaya in Selangor and Scientex Durian Tunggal 2 in Melaka, it added.

For the nine months ended April 30, 2021, the group’s net profit climbed 26.81% to RM314.58 million, from RM248.06 million a year earlier, driven by better packaging sales mix, as well as higher gross earnings recognised from construction progress billings and sales of affordable homes.

EPS increased to 20.30 sen from 16.04 sen.

Its revenue for the period grew 4.74% to RM2.69 billion, from RM2.56 billion a year earlier, due to consistently strong billings from steady construction progress of ongoing development projects, and commendable take-up rates for new property launches.

The group’s chief executive officer Lim Peng Jin said it is optimistic of performing within expectations this year, barring any further unforeseen external developments.

“Our continued innovation in flexible packaging solutions and emphasis on operational efficiency has positioned us strategically to cater to a broad range of markets internationally,” he said.

He is also confident of the long-term prospects of affordable homes’ sales.

“In 3Q21, we completed the acquisition of 319 acres of land in Sungai Petani, Kedah and Jasin, Melaka for RM111.5 million to meet robust demand for affordable homes. We target to launch new projects on these lands in the coming financial year ending July 31, 2022,” he said.

Scientex closed 1 sen or 0.23% lower at RM4.26 today, valuing the group at RM6.61 billion.

Lam Jian Wyn