PETALING JAYA: Packaging manufacturer and property developer Scientex Bhd reported 32.2% higher net profit of RM97.47 million in the second quarter ended Jan 31, 2020 (Q2) from RM73.75 million a year ago.
The better earnings were driven by higher sales and favourable product mix in the manufacturing segment, as well as increased property development billings.
Revenue also rose 19.3% to RM914.38 million from RM766.59 million previously.
The manufacturing segment revenue grew 20.1% to RM659.4 million on higher sales volume of flexible plastic packaging (FPP) , as well as contributions from the acquired converting businesses of Daibochi Bhd and Mega Printing & Packaging Sdn Bhd.
The property development segment made up RM255.0 million of revenue in Q2, expanding 17.2% from RM217.6 million previously on growth in sales of affordable properties and steady progress billings.
For the six-month period, Scientex’s net profit surged 40% to RM178.44 million from RM127.41 million last year, with revenue expanding 21% to RM1.79 billion from RM1.48 billion.
Scientex CEO Lim Peng Jin said the group has built a manufacturing base that produces a comprehensive range of FPP essential to many industries worldwide with the expansion of its manufacturing footprint in Southeast Asia and the US.
He expects a sustainable growth in the manufacturing segment in FY2020 on stable demand.
“That said, we are closely monitoring developments of Covid-19 which poses uncertainties in global markets, and remain focused on our long-term strategy to enhance production efficiency.”
On the property front, he noted that the group continues to acquire new land to support its future growth and targets to launch its maiden projects in Penang and Kundang Jaya in the second half of 2020.
It is on track to launch projects worth RM1.1 billion in gross development value in FY2020.
At 3pm, the stock was trading 36 sen higher at RM8.87 with 197,800 shares changing hands.
