KUALA LUMPUR (March 12): Scientex Bhd (KL:SCIENTX), which reported a 12.1% drop in net profit for the second quarter ended Jan 31, 2025, Wednesday announced that its major shareholder Lim Peng Cheong will replace Tan Sri Datuk Mohd Sheriff Mohd Kassim, who is retiring, as non-executive chairman of the company.

Peng Cheong and Lim Peng Jin, Scientex’s managing director and CEO, are brothers. They both own more than a 55% interest in the company through Scientex Infinity Sdn Bhd.

Peng Cheong has been a member of Scientex’s board since 1988.

The announcement was part of a slew of changes at the board level. Peng Jin has resigned as a member of the board’s risk committee, while Chang Siew Sian has been appointed to the board and to the risk committee.

Datuk Noorizah Abd Hamid was also appointed as an independent and non-executive member of the nomination and remuneration committee.

In a separate filing with the bourse on Wednesday, the packaging manufacturer cum property developer reported quarterly revenue of RM1.11 billion, a marginal increase from RM1.09 billion a year earlier, driven by the property segment.

The company said packaging revenue suffered a slight 0.8% decline to RM630.7 million for the quarter; however, intense market competition in the industrial packaging products ate into profit, even while consumer packaging products remained stable.

On the other hand, property revenue rose by 3.83% to RM474.4 million from RM456.9 million, thanks to steady construction progress and project completions.

Earnings per share stood at 7.97 sen, a decline of 12.32% versus 9.09 sen previously. The company did not pay any dividend for the current financial quarter under review.

For the first half-year period ended Jan 31, 2025, net profit declined 9.4% y-o-y to RM252.55 million from RM278.85 million.

This was despite marginally higher revenue of 0.7% to RM2.21 billion from RM2.20 billion.

Looking ahead, Scientex said the packaging division is tackling challenges such as intense competition, inflation, currency fluctuations, geopolitical uncertainties and weak market sentiment while focusing on cost management and operational efficiency.

On its property division, it said it is focusing on affordable housing, driven by strong demand, especially from middle-to-lower-income groups.

It expects Malaysia's Budget 2025 measures to improve housing affordability, as the stable Overnight Policy Rate (OPR) of 3% supports home loan affordability, boosting buyer confidence and sales momentum.

Recent property launches have seen strong market interest and new land acquisitions in Bestari Jaya, Selangor; Jawi, Penang; Pulai, Johor; and Paya Rumput, Melaka; are expected to further expand the division's market presence. The group maintains a positive outlook for the financial year.

Scientex’s shares were up six sen or 1.75% earlier to RM3.48 a share, giving it a market capitalisation of RM5.42 billion. Year-to-date, the counter has declined 21.62% this year.