Scientex proposes 30% of earnings as dividends

by **hlk** Tue 21 Jun 2011, 18:49

KUALA LUMPUR: Scientex Bhd’s earnings rose 21.2% to RM20.38 million in the third quarter ended April 30, 2011,underpinned by its property development and also announced a dividend policy to pay a minimum of 30% of earnings as dividends.

It said on Tuesday, June 21 that revenue climbed 21.1% to RM217.31 million from RM179.50 million while earnings per share were 9.48 sen compared with 7.81 sen.

“The dividend policy would be effective from FY2011 onwards, and is subject to the group’s operating results, business prospects and new investment plans, amongst other considerations,” it said.

For the nine-months period ended April 30, its earnings rose 32.9% to RM56.47 million from RM42.49 million while revenue increased by 19% to RM598.82 million from RM503.13 million.

“The better financial performance was mainly attributed to the group’s property development segment, which saw 62.1% growth in revenue to RM159.0 million for the nine-month period, against RM98.1 million of the previous year’s nine-month period,” it said.

As at April 30, the group’s four property development projects have a total gross development value (GDV) of RM2.1 billion, which was enough to last until 2019.

Scientex said for the nine months to April 30, its 145-acre project of mixed development of high-end residential and commercial PROPERTIES [] had become the second largest revenue contributor to the group’s property development segment - about RM46.3 million, or 29%, of the segmental sales of RM159.0 million.

Its industrial packaging manufacturing segment posted 8.6% growth with revenue of RM439.9 million for the nine months.

Despite a jump in sales tonnage and profit for stretch film and strapping band; sales fell for other niche products, which also saw higher raw material prices.

The product mix, coupled with the weakening US dollar, led to 5.4% lower group EBITDA of RM41.0 million, against RM43.3 million previously.

About 80% of Scientex’s manufacturing revenues come from exports and the group’s overseas operations.