Scientex's 2Q net profit leaps 79% on improved profit margins

by **Cals** Wed 23 Mar 2016, 05:40

Scientex's 2Q net profit leaps 79% on improved profit margins

By Sangeetha Amarthalingam / theedgemarkets.com | March 22, 2016 : 4:29 PM MYT

KUALA LUMPUR (March 22): Scientex Bhd's net profit leapt 79.2% year-on-year (y-o-y) to RM64.6 million in its second quarter ended Jan 31, 2016 (2QFY16), from RM36 million a year ago, due to better profit margins achieved in both its industrial and consumer packaging products segments.

It also attributed the improved earnings to contribution from its subsidiary Scientex Great Wall (Ipoh) Sdn Bhd, according to its bourse filing today.

Revenue for the quarter under review grew 17.8% to RM545.4 million, compared to RM462.9 million in the corresponding quarter a year ago, due to a 22.9% y-o-y rise in manufacturing revenue to RM402 million from RM327 million, and a 5.6% y-o-y rise in property revenue to RM143.4 million from RM135.9 million.

The revenue growth in the manufacturing segment was mainly attributed to higher contribution from the consumer packaging products in both the local and export markets, and contribution from the newly acquired Scientex Great Wall.

For the first half ended Jan 31, 2016 (1HFY16), net profit expanded 89.2% to RM125.47 million from RM66.3 million in 1HFY15 because of better sales performance achieved from both the manufacturing and property segments.

Revenue jumped 22.6% to RM1.09 billion in 1HFY16, compared to RM983.9 million last year.

Barring unforeseen circumstances, the group remains optimistic that demand for both its industrial and consumer packaging products for the current year will continue to remain sustainable.

Meanwhile, it will also continue to focus its efforts on affordable homes in its Pasir Gudang, Kulai and Senai projects in the foreseeable future. "For the coming year, the group foresees that the affordable homes segment continues to be the mainstay for its earnings growth barring unforeseen circumstances," it added.

At 3.55pm, Scientex shares rose 32 sen or 2.6% to RM12.62, valuing it at RM2.87 billion.