KUALA LUMPUR: Scientex Bhd (Scientex) net profit jumped 32.2 per cent to RM97.5 million in the second quarter (2Q) ended 31 January 2020 from RM73.7 million a year ago driven by higher sales and favourable product mix in the manufacturing segment, as well as increased property development billings.
Group revenue rose 19.3 per cent to RM914.4 million in 2Q20 from RM766.6 million previously, the company noted in an exchange filing today.
The manufacturing segment revenue grew 20.1 per cent to RM659.4 million in 2Q20 from RM549.0 million previously on higher sales volume of flexible plastic packaging (FPP), as well as contributions from the acquired converting businesses of Daibochi Bhd (Daibochi) and Mega Printing & Packaging Sdn Bhd (MPP).
The property development segment made up RM255.0 million of revenue in 2Q20, expanding 17.2 per cent from RM217.6 million previously on growth in sales of affordable properties, steady progress billings from existing affordable township developments in various states in Malaysia, and maiden contribution from newly-launched Taman Pulai Mutiara 2.
Chief executive officer Lim Peng Jin said the group has built a formidable manufacturing base that produces a comprehensive range of FPP essential to many industries worldwide, and have significantly expanded our manufacturing footprint in Southeast Asia and the United States.
“Going forward, we continue to be focused on our strengths in enhancing efficiency and innovation, to consistently deliver greater solutions to our customers.
“We are also driving sustainable growth via capacity expansions, as well as enhancing our products and solutions capabilities across the manufacturing value chain,” said Lim.
Lim said the group has considerable successes in building affordable homes for the Malaysian population via our townships in various states and have delivered more than 18,500 units and growing.
“We have continued to acquire new lands to support our future growth and bring the Scientex brand to various states in Peninsular Malaysia, and target to launch our maiden project in Penang and Kundang Jaya in the second half of 2020,” he added.
Commenting on prospects, Lim said the group expects to register sustainable growth in the performance of its manufacturing segment in FY2020 on stable demand.
He said the group is closely monitoring developments of COVID-19 which poses uncertainties in global markets, and remain focused on our long-term strategy to enhance production efficiency.
“We are committed to bringing more affordable homes to the Malaysian population, and would continuously work towards maintaining competitive pricing through cost optimization while maintaining quality standards.
“For instance, the standardisation of our building designs enables us to complete larger volumes of affordable homes at a quicker pace and at lower costs, thus reinforcing our efforts in making homeownership affordable for the masses,” he said.