Scientex Bhd is on track with its expansion goals, which are designed for longer-term growth, according to the company's chief executive officer Lim Peng Jin.
Lim said the company's property development segment continues to enjoy steady demand for its affordable homes.
According to him, the division has several fresh launches planned as part of its continuous developments and will take advantage of its powerful branding, competitive pricing, and advantageous locations (to generate sales).
"We expect stable demand for our affordably priced homes and are undertaking cost management initiatives to address higher construction costs," he said.
Scientex said in a stock exchange filing that it keeps track of and maintains its ongoing attempts to strike a balance between its products' affordability and escalating operational costs.
It stated that despite the series of interest rate hikes by Bank Negara Malaysia, it does not anticipate that these increases will hurt demand for its products, which continue to be priced affordably despite the higher construction costs that the company is actively managing through its ongoing costs management initiatives.
To combat rising operational costs, the company seeks to buy landbanks at advantageous locations at affordable prices to ensure that land costs stay reasonable.
Scientex's net profit increased slightly by 4.2 per cent to RM107.18 million in the first quarter that ended on October 31, 2022 (Q1 2022), from RM102.87 million in the same quarter the previous year due to better sales from its packaging and real estate development divisions.
Revenue climbed 11 per cent to RM1.03 billion during the reviewed quarter from RM928.17 million previously.
The development projects in Taman Pulai Mutiara 1 and 2 in Johor, as well as Scientex Jasin and Scientex Bandar Jasin in Melaka, contributed significantly to the growth in property revenue of 25.5 per cent year over year to RM313.9 million.
The strong demand generated by the new launches also had a role in the improved revenue.