PETALING JAYA: Scientex Bhd, a packaging manufacturer and property developer, achieved revenue of RM1.1 billion and net profit of RM128.6 million for the first quarter ended Oct 31, 2024 (Q1’25).
Group revenue remained consistent with the RM1.1 billion reported in the previous corresponding quarter.
The property division was the key performance driver, with revenue rising 6% to RM483.7 million from RM456.1 million previously, driven by steady construction progress across the northern, central, Malacca and Johor regions, coupled with strong take-up rates for ongoing projects.
The packaging division recorded RM625.7 million in revenue, a slight decline of 3.8% from RM650.4 million previously. This was mainly due to softer demand from the export market and unfavourable foreign currency exchange movements.
Despite a 6.7% decline in net profit compared to RM137.8 million the previous year, the strong performance of the property division bolstered the group’s overall profitability.
Scientex CEO Lim Peng Jin said the property division continues to benefit from robust demand for affordable homes.
He said that by focusing on strategically located projects and expanding its portfolio of quality, cost-effective homes, Scientex is able to meet market demand while improving housing accessibility.
“In packaging, we are navigating a challenging global economic environment by focusing on innovation, operational efficiency enhancement, and sustainability. This includes developing customised, value-added packaging solutions, with emphasis on incorporating recycled materials as our customers increasingly adopt sustainable practices.
“With our twin-engine growth strategy from packaging and property, Scientex is committed to driving long-term growth, underpinned by our focus on innovation, operational excellence, and market expansion,” he said.
Scientex’s property division continues to experience robust demand, driven by the essential need for affordable housing among middle-to-lower-income groups.
In Q1’25, the group recorded encouraging take-up rates for recent launches in Scientex Jenjarom (Selangor), Scientex Sungai Dua (Penang), Scientex Ipoh (Perak), Scientex Bandar Jasin (Malacca) and Scientex Pulai 3 (Johor), demonstrating strong market demand for affordable housing in these regions.
On a separate note, the group is on track to complete the installation of rooftop solar photovoltaic systems for its headquarters and 10 key packaging manufacturing plants nationwide by next month.
This initiative aims to reduce energy costs and lower Scope 2 emissions, further embedding sustainability into the group’s operations.
Lim said, “We see long-term opportunities in the flexible packaging industry, supported by our capacity and capabilities to innovate and develop customised value-added solutions. While the global packaging market remains subdued due to ongoing supply chain disruptions and geopolitical tensions, the demand for flexible packaging persists, given its essential role in everyday activities.
“In our property division, we target the launch of 8,000 affordable homes annually starting in FY25, up from the 6,300 units in FY24. This aligns with our goal of delivering 50,000 affordable homes by 2028, with nearly 38,000 homes already completed to date. This reaffirms our commitment to addressing the housing needs of Malaysians.”
Scientex shareholders yesterday approved a final dividend of 6 sen per share for the financial year ending July 31, 2024 (FY24). The ex-date is Jan 7, 2025, and the payment date is Jan 17, 2025. With the earlier interim dividend of 6 sen per share, the total dividend for FY24 amounts to 12 sen per share. This represents a total payout of RM186.5 million, equivalent to 34.2% of the group’s FY24 net profit.
