KUALA LUMPUR: Scientex Bhd’s net profit for the first quarter (1Q) ended Oct 31, 2019 surged 50.9% to RM81 mil from RM53.7 mil in the same period a year ago.
Revenue rose 22.9% to RM877.4 mil from RM713.6 mil previously.
The packaging manufacturer and property developer in a statement today said the better profit was due to an enlarged operations base and favourable product mix in the manufacturing segment, as well as higher progress billings in the property development division.
Managing director Lim Peng Jin said the 1Q performance showcased the outcome of ongoing product mix enhancement, successful consolidation of new acquisitions with Daibochi Bhd recording its best-ever quarterly revenue, as well as robust demand for strategically located affordable homes.
“Our growth in 1Q has established a firm foundation to sustain our performance in the financial year 2020,” he said.
Scientex acquired a 61.9% stake in Daibochi in April this year. In turn, Daibochi completed the acquisition of Mega Printing and Packaging Sdn Bhd in August this year.
Going forward, Lim said the property development division aimed to launch RM1.1 bil worth of new properties in the current financial year.
“The segment is headed for steady growth backed by our continuous landbanking exercise, the most recent being the new landbank in Tasek Gelugor in Penang, Kundang (Selangor) and Kota Tinggi (Johor), which bring our total landbank in Peninsular Malaysia close to 1,616ha and thus would last for more than 10 years,” he said.
To date, Scientex has built more than 18,000 affordable homes out of its targeted 50,000 units to be completed by 2028. – Dec 17, 2019, Bernama