Scientex 1Q net profit rises 4.2% to RM107 mil on strong revenue

• "To date, we have built over 27,000 affordable homes, with most of them priced below RM300,000 to address the vastly underserved market."

KUALA LUMPUR (Dec 8): Scientex Bhd's net profit for the first quarter ended Oct 31, 2022 (1QFY2023) rose 4.2% year-on-year to RM107.18 million from RM102.87 million, on the back of an 11% rise in revenue.

In a Bursa Malaysia filing on Thursday (Dec 8), Scientex said its revenue for the quarter rose to RM1.03 billion from RM928.17 million a year earlier, on healthy contributions from its packaging and property divisions.

Earnings per share were 6.91 sen versus 6.63 sen earlier.

The company did not declare any dividend.

In a separate statement, Scientex chief executive officer Lim Peng Jin said the company is achieving sustainable growth, as it simultaneously generates economic profits alongside community development and environmental preservation, undergirded by a culture of innovation.

"To this end, our packaging division has marked new innovation milestones, as we successfully commercialised 27 new packaging innovations in the last financial year ended July 31, 2022 (FY2022) alone.

"These included various new innovations for sustainable and fully recyclable solutions in collaboration with global brand owners to fulfil rapidly growing demand," he said.

Lim said Scientex's property division is committed to providing more affordable homes to the local communities.

"To date, we have built over 27,000 affordable homes, with most of them priced below RM300,000 to address the vastly underserved market," he said.

Commenting on the group's outlook, Lim said gobal uncertainties and elevated operating costs caused by supply chain disruptions and elevated inflation remain key themes, and could affect global packaging demand in the near term.

"Notwithstanding these, Scientex continues to strengthen our operational and supply chain efficiencies, as well as upgrade our capabilities to maintain competitiveness.

"Furthermore, we remain on track in our expansion plans which are tailored for longer-term growth," he said.

As of the midday break on Thursday, Scientex's share price added 0.6% or two sen to RM3.38 with 107,400 shares done.