KUALA LUMPUR (Dec 18): Packaging manufacturer and developer Scientex Bhd's (KL:SCIENTX) earnings slipped in the first quarter ended Oct 31, 2024 (1QFY2025) as its packaging segment's lower profits more than offset its property division's better performance.

According to its Bursa Malaysia filing on Wednesday, quarterly net profit fell 6.7% to RM128.6 million or 8.29 sen per share from RM137.8 million or 8.89 sen per share a year ago.

Scientex did not declare any dividends for the quarter under review. Its shareholders on Wednesday approved a final dividend of six sen per share for FY2024, payable on Jan 17, 2025.

For the entire FY2024, the group has declared total dividends of 12 sen per share, amounting to RM186.5 million. The dividend is equivalent to a payout ratio of 34.2%.

Revenue was flat at RM1.11 billion, as the growth recorded by its property division was partly offset by the decline in its packaging revenue due to unfavourable foreign exchange movement and softer demand from the export market.

In a separate statement, Scientex managing director and chief executive officer Lim Peng Jin said the group’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,” he said.

As for its packing segment, Lim highlighted that the division would focus on innovation, operational efficiency enhancement, and sustainability, to navigate through a challenging global economic environment.

“This includes developing customised, value-added packaging solutions, with emphasis on incorporating recycled materials as our customers increasingly adopt sustainable practices,” he said.

On prospects, for the property division, Lim said the group targets the launch 8,000 affordable homes annually, starting in FY2025, up from 6,300 units in FY2024. This aligns with its goal of delivering 50,000 affordable homes by 2028. Currently, it has completed nearly 38,000 homes.

“This reaffirms our commitment to addressing the housing needs of Malaysians,” he added.

As for its packaging segment’s prospect, “We see long-term opportunities in the flexible packaging industry, supported by our ready capacity and capabilities to innovate and develop customised 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,” Lim said.

At 5pm on Wednesday, shares of Scientex closed unchanged at RM4.50, giving it a market capitalisation of RM7 billion. Year-to-date, the stock has gained 18.11%.