PRESS RELEASE
Scientex records RM128.6 million net profit in 1Q25
- Property division 1Q25 revenue grows 6.0% to RM483.7 million, while packaging division revenue impacted by currency fluctuations and softer export demand
- Shareholders approve final dividend of 6 sen per share in respect of FY2024; dividend payout of 34% exceeds minimum 30% policy
Shah Alam, Selangor, Malaysia, 18 December 2024 - Global packaging manufacturer and leading property developer Scientex Berhad (Scientex, 森 德 公 司 , Bloomberg: SCI MK) achieved revenue of RM1.1 billion and net profit of RM128.6 million for first quarter ended 31 October 2024 (1Q25).
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 6.0% to RM483.7 million from RM456.1 million previously, driven by steady construction progress across the Northern, Central, Melaka 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% compared to RM650.4 million previously, 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 in the previous year, the Group's overall profitability was bolstered by the strong performance of the property division.
"Scientex's property division continues to benefit from robust demand for affordable homes. By focusing on strategically located projects and expanding our portfolio of quality, cost- effective homes, we are 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 customized, value-added packaging solutions, with emphasis on incorporating recycled materials as our customers increasingly adopt sustainable practices.
With our twin-engine growth strategy from both packaging and property, Scientex is committed to driving long-term growth, underpinned by our focus on innovation, operational excellence, and market expansion."
Mr. Lim Peng Jin (林炳仁),
CEO, Scientex Berhad
Scientex's property division continues to experience robust demand, driven by the essential need for affordable housing among middle-to-lower-income groups. In 1Q25, the Group recorded encouraging take-up rates for recent launches in Scientex Jenjarom (Selangor), Scientex Sungai
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Dua (Penang), Scientex Ipoh (Perak), Scientex Bandar Jasin (Melaka), 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 PV systems for its headquarters and 10 key packaging manufacturing plants nationwide by January 2025. This initiative aims to reduce energy cost and lower Scope 2 emissions, further embedding sustainability into the Group's operations.
Commenting on prospects, Lim expressed optimism for the current financial year ending 31 July
2025 (FY2025):
"We see long-term opportunities in the flexible packaging industry, supported by our ready capacity and capabilities to innovate and develop customized value-added packaging 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 FY2025, up from the 6,300 units in FY2024. 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 have today approved a final dividend of 6 sen per share in respect of the financial year ended 31 July 2024 (FY2024), with the ex-date set for 7 January 2025 and the payment date on 17 January 2025. With the earlier interim dividend of 6 sen per share, the total dividend for FY2024 amounts to 12 sen per share. This represents a total payout of RM186.5 million, equivalent to 34.2% of the Group's FY2024 net profit.
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About Scientex Berhad (森德公司, www.scientex.com.my)
Scientex Berhad (Scientex) is a leading manufacturer in flexible plastic packaging and a prominent developer of affordable homes in Malaysia.
Established in 1968, our drive to achieve continuous growth has seen us become one of the world's top manufacturers of stretch film and an end-to-end flexible plastic packaging producer with a presence across the packaging value chain, from stretch films, base films and printed films to bags and multi-layered flexible plastic packaging solutions used in industrial and consumer packaging.
To date, Scientex has 18 manufacturing plants across Malaysia, Vietnam, Myanmar and the United States of America; as well as sales offices in 9 countries, namely, Australia, Indonesia, Japan, Myanmar, New Zealand, Philippines, Singapore, Thailand and USA. Approximately 70% of its packaging products are exported to over 60 countries worldwide.
Scientex's property arm has township development projects in Pasir Gudang, Kulai, Skudai, Senai, Pulai, Kota Tinggi and Muar (all in Johor), Ayer Keroh, Durian Tunggal and Jasin (all in Melaka), Seremban (Negeri Sembilan), Rawang, Kundang Jaya, Jenjarom and Bestari Jaya (all in Selangor), Ipoh (Perak), Tasek Gelugor, Sungai Dua and Jawi (all in Penang), as well as Sungai Petani (Kedah). The Group is also acquiring 350 acres in Pulai, Johor. To date, Scientex has delivered RM11.0 billion worth of properties and has projects-in-hand of RM3.9 billion.
Issued for and on behalf of SCIENTEX BERHAD by Aquilas Advisory (Malaysia) Sdn Bhd
For investor and media enquiries, please contact:
Mr. Tay Tze Yi
- tayty@aquilas.com.my
T: 03-2711 1391 / 016-3380 555
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