Scientex's 4Q net profit strengthens to RM142m, pays 13 sen dividend

KUALA LUMPUR (Sept 18): Flexible plastic packaging (FPP) manufacturer Scientex Bhd's net profit for the fourth quarter ended July 31, 2020 (4QFY20) rose 6.5% to RM142.05 million from RM133.4 million a year ago, lifted by higher operating profit at its manufacturing segment, and the resumption of construction activities at its property development segment.

Quarterly revenue climbed almost 2% to RM954.63 million from RM938.77 million previously, its quarterly results filing today shows. Earnings per share improved to 27.54 sen from 25.89 sen.

The group declared a final dividend of 13 sen per share, payable on Jan 13, 2021. This is higher than the 10 sen dividend it posted in the corresponding quarter a year ago.

The group said its manufacturing segment posted an operating profit of RM71.1 million for the quarter, up 6% from RM67.1 million previously.

With the resumption of construction activities during the quarter, the group also saw stable construction progress in its property development projects, with strong progress billings. Accordingly, its property development segment's operating profit for the quarter was stable at RM112.6 million, versus last year's RM112.1 million.

For the full year, Scientex posted a record net profit of RM390.11 million, up 17% from RM333.7 million for FY19, while revenue grew 8% year-on-year to RM3.52 billion from RM3.25 billion.

Looking ahead, the group said it expects demand for FPP products, which are essential components in the food and beverages packaging supply chain, is expected to continue to see resilient demand. "The group will continue to enhance its capacity and capabilities and tapping better operational efficiencies as part of its longer-term strategy to produce more sustainable FPP and value-added packaging products to meet the demand of its global customers and international brand owners," it said.

Meanwhile, Scientex said it remains focused on providing affordable homes as demand for such affordable housing remains strong, amid the low interest rate environment and supported by various government initiatives.

"The group has completed the acquisitions of its lands in Tasek Gelugor, Penang and Kundang, Selangor in December 2019 and we target to have official first launches in both lands in the coming financial year," it said, adding it will continue to explore and expand its land bank.

At the time of writing, Scientex shares were trading 60 sen or 6.54% higher at RM9.77, giving it a market capitalisation of RM4.75 billion.

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