Scientex was among the top gainers as investors were positive about its purchase of Mondi Ipoh Sdn Bhd (MISB) for RM58mil cash to expand its consumer packaging division.
PETALING JAYA: Global packaging manufacturer and property developer Scientex Bhd
chalked up 8.6% in net profit to RM66.5mil and 17.0% gain in revenue to RM636.2mil in the third quarter ended April 30, 2017 (Q3 17) .
The stronger performance was mainly attributed to stronger exports in the group’s manufacturing segment and higher progress billings for ongoing property development projects.
Cumulatively, revenue for the nine months (9M17) amounted to RM1.8bil, increasing 7.1% from RM1.6bil previously. However, the group posted a marginal decline in net profit to RM183.7mil from RM186.7mil a year ago, in line with the group’s market penetration strategy.
Scientex declared an interim dividend of 6 sen per share in respect of FY2017, with ex-date on July 5 and payable on July 21. The estimated payout would stand at RM29.0mil or 15.8% of 9M17 net profit.
The group has a dividend policy to distribute at least 30.0% of net profit to shareholders.
Managing director Lim Peng Jin in a statement said the company’s consumer packaging reported growth from export customers, especially for cast-polypropylene (CPP) and biaxially-oriented polypropylene (BOPP) films which started in early and end-2016 respectively.
“Meanwhile, the group’s ongoing expansion at its consumer packaging plant in Ipoh to double up annual capacity to 24,000 metric tonnes is expected to complete by August.
“The increased capacity, particularly for form-fill-seal (FFS) bags, hygiene bags, and label films, would allow for additional growth in our consumer packaging division.
“Additionally, our new stretch film plant in Arizona, United States, is seeing good progress in factory renovations. We have also acquired five stretch film rewinders that are set to commence in October 2017, and two cast film production lines to be installed in December 2017 and early-2018 respectively.
“Furthermore, our property development segment continues to achieve commendable sales, with average take-up rate above 75% across ongoing projects as at Q3 17.
“As a recognised leader in affordable developments, we will continue to focus on bringing reasonably priced and quality houses to the masses, and look forward to consistently growing our property division,” Lim added.
About 70% of total Q3 17 revenue was derived from the manufacturing segment with RM442.8mil, which rose 15.7% from RM382.8mil previously.
The boost was led by exports of industrial and consumer packaging. Exports made up 75.9% of manufacturing segment revenue in Q3 17, compared to 72.4% in Q3 16.
The group’s property segment contributed the remaining RM193.4mil to Q3 17 revenue, growing 20.0% from RM161.1mil a year ago on higher progress billings for ongoing development projects in Johor, Melaka and Ipoh.
On future prospects, Lim said the expansion plans for its consumer packaging segment are en route for completion by end-2017, rendering the company able to focus on maximising its capacity in the near term.
“Meanwhile, we continue to replenish our landbank, and have recently completed the acquisition of 197.4 acres of land in Melaka. We also expect to complete the purchase of another 121.2 acres of land situated in Senai, Johor in the second half of 2017.”
“With demand for affordable homes on the rise, we would strive to launch more projects going forward to capture a larger share of the market,” he noted.
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