PETALING JAYA: Scientex Bhd
continues to caution against a challenging outlook for its packaging business while maintaining an optimistic outlook on the demand for its property division.
For the fourth quarter ended July 31, 2024 (4Q24), the global packaging manufacturer and property developer’s net profit rose by 18.2% year-on-year (y-o-y) to RM135.9mil or earnings per share of 8.76 sen. The group also posted a 9% y-o-y increase in its revenue to RM1.17bil.
For the financial year ended July 31, 2024, Scientex’s net profit increased by 24% y-o-y to RM545.2mil. Revenue also rose by almost 10% y-o-y to RM4.48bil.
Scientex has proposed a single-tier final dividend of 6 sen per share for FY24, pending approval from shareholders at the upcoming annual general meeting.
Together with the 6.0 sen interim dividend paid on July 19, the estimated total dividend payout amounts to RM186.2mil, representing 34.1% of the group’s net profit for FY24.
In a filing with Bursa Malaysia, both the group’s packaging and property division saw an improved performance y-o-y in 4Q24.
For 4Q24, the packaging division’s revenue was at RM651.3mil compared to RM619.7mil in 4Q23, mainly contributed by industrial packaging products. On the other hand, operating profit of this segment stood at RM45.2mil compared with RM24.3mil in 4Q23.
Meanwhile, the property division’s revenue stood at RM517mil in 4Q24, reflecting an increase of 14.4% y-o-y. The higher revenue was contributed by steady construction progress for its ongoing projects in Bandar Jasin, Rawang, Sungai Petani, Kundang, Tasek Gelugor and Pulai. Moreover, the robust demand for the group’s new launches in Sungai Dua, Jenjarom, Pulai and Senai also contributed to the increase in revenue.
The operating profit of Scientex’s property segment, in tandem with the higher revenue recorded, increased to RM132mil compared to RM124.7mil posted in the preceding year corresponding quarter.
The group said the packaging business continues to face a challenging outlook due to ongoing supply chain disruptions, inflationary pressure, fluctuation in foreign currency exchange rates, geopolitical tensions and subdued market sentiment.
On this note, Scientex noted it will remain focused in managing the operational costs of the packaging division, while improving the segment’s operational efficiency in order to maintain competitiveness in the market.
Additionally, the group said the packaging division will continue to innovate and develop customised value-added packaging solutions in order to cater the growing demand of its customers for sustainable and fully recyclable packaging solutions.
As for the property division, Scientex said this segment continues to witness steady demand for its affordable properties.
The group stated the new launches of its project in Jenjarom (Selangor), Sungai Dua (Penang), Sungai Petani (Kedah), Ipoh (Perak), Jasin (Melaka) and Pulai (Johor) have achieved encouraging take-up rates, signalling the continued strong demand for its affordable homes. The company expects this positive momentum to continue with its future launches.
