KUALA LUMPUR (Dec 14): Packaging manufacturer and property developer Scientex Bhd kick-started its new financial year on a positive note, with its net profit for the first financial quarter ended Oct 31, 2023 (1QFY2024) climbing 28.6% to RM137.84 million, from RM107.18 million a year earlier, driven by its property division.

Earnings per share came in higher at 8.89 sen for 1QFY2024, compared with 6.91 sen for 1QFY2023.

Quarterly revenue rose 7.4% to RM1.11 billion in 1QFY2024, from RM1.03 billion a year earlier.

In a filing with Bursa Malaysia on Thursday, Scientex said its property division recorded a 45.3% year-on-year increase in revenue of RM456.1 million, buoyed by smooth construction progress for all projects across Peninsular Malaysia. Additionally, strong take up for new launches in Scientex Sungai Dua, Scientex Seremban and Scientex Bandar Jasin contributed to the firm results.

This was despite its packaging division recording a weaker revenue of RM650.4 million in 1QFY2024, down 9% from RM716 million a year ago, mainly due to softer exports in the consumer packaging segment.

Looking ahead, Scientex said the property division will continue to launch new phases of affordable housing across its developments in the peninsula, to meet the robust demand by leveraging on its branding and strategic locations.

“The latest land acquisitions located in Jenjarom in Selangor, and Tebrau and Kulai in Johor Bahru, are expected to be completed in 2024 and are expected to contribute positively to the group’s performance in the near future,” it added.

However, its packaging division is expected to face ongoing inflationary pressures, leading to a subdued market sentiment that may affect global market demand. Additionally, rising interest rates, as well as energy cost will continue to weigh down on its operational costs.

“While the packaging division expects the current market conditions to continue in the near-term, the division remains focused on its long-term growth strategy and is optimistic that its performance for the current financial year remains sustainable,” Scientex said.

At Thursday’s noon break, Scientex’s share price closed unchanged at RM3.50, giving it a market capitalisation of RM5.43 billion. A total of 88,800 shares were traded.