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KUALA LUMPUR: Scientex Bhd
posted a record net profit of RM390.11k in the financial year ended July 31, 2020, supported by strong growth in its packaging manufacturing and property development segments.
It announced on Friday that the net profit was a 16.9% increase from RM333.69 thousand in FY19. Its revenue increased 8.3% to RM3.52bil from RM3.24bil.
“The group also noticed an improvement in profit margins, as a result of an improved product mix and improved manufacturing efficiency, which complemented higher sales and stable progress turnover in the property development segment,” he said. .
Scientex’s manufacturing segment contributed RM2.6 billion to fiscal 2020 revenue, 8.2% more than RM2.4 billion a year ago.
The largest contribution was primarily due to annual contributions from its converting businesses. This comprised the recently acquired Daibochi Bhd and subsequently the acquisition of Mega Printing & Packaging Sdn Bhd by Daibochi, which were completed in the second half of the financial year that ended on July 31, 2019.
Scientex said its manufacturing operating profit increased 43.3% to RM251k in fiscal 2020, supported by stronger manufacturing sales and improved production and product mix efficiency.
Regarding its property development segment, revenues increased 8.7% to RM967.5 thousand from RM889.6 thousand. It attributed the strongest performance due to good acceptance rates and stable progress billing for its affordable residential project offerings in Johor, Melaka and the Midwest.
Fourth trimester
Scientex said that in the fourth quarter, its net profit increased 6.5% to RM142.05 thousand from RM133.40 thousand a year ago. Their income increased 1.7% to RM954.63 thousand from RM938.76 thousand. Earnings per share were 27.54 sen compared to 25.89 sen.
He proposed a dividend of 13 sen per share compared to 10 sen a year ago.
It said its manufacturing revenue was less than RM621.4 thousand in 4Q20 compared to RM630.3 thousand a year ago.
However, operating profit improved by 6% to RM 71.1 million from RM 67.1 million a year ago thanks to a better mix of products and efficiency.
Regarding its property development business, it recorded an 8% RM333.2mil increase from RM308.5mil in higher progress bills and contributions from recently launched projects in Pulai, Johor and Durian Tunggal, Melaka.
Operating income remained stable at RM112.6k in 4Q20 from RM112.1k.
Scientex also proposed a two-for-one bonus issue and five-year free warrants based on one warrant for every five existing shares.
Its chief executive, Lim Peng Jin, said that in the manufacturing segment, its flexible plastic packaging (FPP) products benefited from support to the essential food and beverage sectors in Malaysia and the region.
He said there was an increase in domestic activities as businesses and households resumed normalcy from the Conditional Motion Control Order (CMCO) onward.
“We will continue to further expand our manufacturing capabilities and capabilities to develop more value-added FPP products, as well as to achieve greater efficiencies.
“In addition, recognizing the tremendous growth potential of sustainable FPP in line with global consumer trends, we are also developing more sustainable solutions to meet the growing demand from multinational corporations and international brand owners,” he said.
Regarding its property development segment, Lim said Scientex would continue to focus on the resilient demand for affordable housing.
Lim said Scientex plans to launch 6,000 affordable homes with a gross development value of RM1.6bil in the new financial year.
“This is double the 3,034 units launched in fiscal 2020, as we anticipate strong demand. In addition to government incentives and campaigns to support this goal, we continue to expand our land bank in Peninsular Malaysia, “he said.
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