SCIENTEX at a glance

 

Scientex at a Glance

 

Scientex

 

Scientex reaches new record in quarterly earnings

June 21, 2017, Wednesday

KUCHING: Global packaging manufacturer and leading property developer Scientex Bhd (Scientex) reached a new record in quarterly performance in the third quarter ended April 30, 2017 (3Q17) with 8.6 per cent increase in net profit to RM66.5 million and 17.0 per cent gain in revenue to RM636.2 million.

The stronger performance was mainly attributed to 

• stronger exports in the group’s manufacturing segment and 
• higher progress billings for ongoing property development projects, it said in a statement.

Managing director Lim Peng Jin said Scientex’s consumer packaging reported growth in adoption from export customers, especially for cast-polypropylene (CPP) and biaxially-oriented polypropylene (BOPP) films which started in early and end-2016 respectively.

“Meanwhile, the ongoing expansion at our consumer packaging plant in Ipoh to double up annual capacity to 24,000 metric tonnes is expected to complete by August 2017,” he said in the statement.

“The increased capacity, particularly for form-fill-seal (FFS) bags, hygiene bags, and label films, would allow for additional growth in our consumer packaging division.

“Additionally, our new stretch film plant in Arizona, US, is seeing good progress in factory renovations. We have also acquired five stretch film rewinders that are set to commence in October 2017, and two cast film production lines to be installed in December 2017 and early-2018 respectively.

“Furthermore, our property development segment continues to achieve commendable sales, with average take-up rate above 75 per cent across ongoing projects as at 3Q17.

“As a recognised leader in affordable developments, we will continue to focus on bringing reasonably priced and quality houses to the masses, and look forward to consistently growing our property division.”

Approximately 70 per cent of total 3Q17 revenue was derived from the manufacturing segment with RM442.8 million, which rose 15.7 per cent from RM382.8 million previously. The boost was led by exports of industrial and consumer packaging. Exports made up 75.9 per cent of manufacturing segment revenue in 3Q17, compared to 72.4 per cent in 3Q16.

The group’s property segment contributed the remaining RM193.4 million to 3Q17 revenue, growing 20.0 per cent from RM161.1 million a year ago on higher progress billings for ongoing development projects in Johor, Melaka and Ipoh.

Cumulatively, revenue for the nine months ended 30 April 2017 (9M17) amounted to RM1.8 billion, increasing 7.1 per cent from RM1.6 billion previously. However, the group posted a marginal decline in net profit to RM183.7 million from RM186.7 million a year ago, in line with the Group’s market penetration strategy.

Scientex declared an interim dividend of 6 sen per share in respect of FY2017, with ex-date on 5 July 2017 and payable on 21 July 2017. The estimated payout would stand at RM29.0 million or 15.8 per cent of 9M17 net profit. The group has a dividend policy to distribute at least 30.0 per cent of net profit to shareholders.

Commenting on future prospects, Lim was pleased that the expansion plans for the consumer packaging segment are en route for completion by end-2017, enabling them to focus on maximising its capacity in the near term.

“Meanwhile, we continue to replenish our landbank, and have recently completed the acquisition of 197.4 acres of land in Melaka,” he said. “We also expect to complete the purchase of another 121.2 acres of land situated in Senai, Johor in the second half of 2017.

“With demand for affordable homes on the rise, we would strive to launch more projects going forward to capture a larger share of the market.”

http://www.theborneopost.com/2017/06/21/scientex-reaches-new-record-in-quarterly-earnings/

Scientex matches products with markets to boost sales

September 27, 2016, Tuesday


KUCHING:

Industrial and Consumer Packaging Products

Scientex Bhd (Scientex) has started to make in-roads into new markets for both its industrial and consumer packaging products based on different marketing strategies adopted for specific markets to boost sales demand.

“The group continues to emphasise on quality products and to this end, the ongoing upgrading of facilities and commissioning of new machinery in its Rawang, Pulau Indah, Ipoh and Melaka plants,” the group said in releasing its results yesterday.

“Further, to remain competitive in the global market place and as part of its on-going efforts to boost (profit) margins, the group has taken pro-active steps to enhance its operational efficiency through its continuous efforts to reduce cost and wastages.”

Additionally, the group’s brand new castpolypropylene (CPP) plant is slowly building up its production capacity to meet the demands of its customers whilst the group’s brand new state-of-the-art multi-million biaxially oriented polypropylene (BOPP) film manufacturing plant at Pulau Indah has started testing and commissioning works since July 2016 with full commissioning and commercial operation slated by the second half of the year.

“The group is confident that given the strategies put in place, demand from both local and overseas for its industrial and consumer packaging products is expected to be positive for the coming financial year as it offers quality products with a wider and diversified product portfolio to its expanded global customer base,” Scientex said.



Property Division

Moreover for the property division, Scientex believed the group’s performance for the quarter ended July 2016 was focused primarily on affordable homes in Pasir Gudang, Senai and Kulai projects in Johor where demand remained resilient and robust.

For the quarter ended July 2016, Scientex noted the group was on track and launched its latest Pulai land development which was successfully acquired in early 2016.

“The phenomenal demand for its initial two maiden launches under this development has given a strong boost to the group and plans are underway to tap the huge demand for such affordable homes within the vicinity of this region.

“One of its main attraction is the construction of a new link road by the group that has improved connectivity and accessibility to Gelang Patah, Johor. The upcoming completion of the proposed Kangkar Pulai Interchange to the SecondLink has also boosted the viability and location of this development,” the company observed.

Apart from that, the group also seek to address rising constructional costs by incorporating innovative designs, blending with the environment and tapping operational efficiencies to reduce costs and wastage.

Scientex said its township development projects were all well designed to optimise the use of land space through efficient land usage, density and systematic execution of works to boost operational margins and reduce financing costs through better cash flow management and timing of its launches.

The company noted the group is making preparations for the launch of its two pieces of lands in Ipoh of which vacant possession for its Klebang land has been taken over recently and poised to be launched in the first or second quarter of the coming financial year.

The Meru land acquisition is expected to be completed in September with a maiden launch to be held thereafter, further boosting the sales of the group from these new projects over the medium and longer term.

The group foresees the affordable housing segment will continue to play a pivotal role in contributing to the group’s top and bottomline for the coming financial year.


http://www.theborneopost.com/2016/09/27/scientex-matches-products-with-markets-to-boost-sales/

Scientex’s 4QFY16 earnings up 11 per cent to RM54.14 million, revenue grows to RM561 mln

September 27, 2016, Tuesday


KUCHING: Scientex Bhd’s (Scientex) earnings for the fourth quarter of 2016 (4QFY16) ended July 2016 gained by 11 per cent year-on-year (y-o-y) to RM54.14 million from RM48.91 million recorded in 4QFY15 ended July 2015.

The company in a filing to Bursa Malaysia yesterday said 4QFY16 revenue grew by 24 per cent y-o-y to RM561.06 million from RM452.49 million in 4QFY15.

Scientex noted the improved revenue for 4QFY16 was attributed to higher sales from its property division.

The company in its accounts notes said property revenue recorded in 4QFY16 was RM188.4 million as compared with RM132.6 million in the preceding year corresponding quarter, an increase of 42.1 per cent.

The increase in revenue for the property division was contributed by the steady construction progress and new sales achieved from projects in Johor and Melaka.

However, Scientex noted profit from the division’s operations was lower at RM58.2 million as compared to RM61.5 million in the preceding year corresponding quarter due to product mix for the new project launches in Pasir Gudang, Johor.

Additionally, Scientex shared that its manufacturing revenue increased by 16.5 per cent y-o-y for 4QFY16 to RM372.7 million as compared with RM319.9 million generated in 4QFY15.

The company explained that the increase was attributed to higher contribution from the consumer packaging products as well as contribution from the newly acquired Scientex Great Wall Ipoh Sdn Bhd.

Earlier, on August 5, 2015, Scientex announced that its wholly-owned subsidiary Scientex Packaging Film Sdn Bhd (SPFSB) had entered into a share purchase agreement with Mondi Consumer Packaging International GmbH to acquire Scientex Great Wall (Ipoh) Sdn Bhd for RM58 million with the transaction completed on August 11.

However, Scientex said its operational profit from the manufacturing segment decreased to RM15.9 million from RM24.8 million due to lower product profit margins.

For the full financial year 2016 (FY16) ended July 2016, Scientex said revenue rose by 22 per cent y-o-y to RM2.2 billion while net profit jumped by 52 per cent y-o-y to RM240.87 million.

Scientex noted that the improved profit was attributed to better sales achieved for both the property and manufacturing

http://www.theborneopost.com/2016/09/27/scientexs-4qfy16-earnings-up-11-per-cent-to-rm54-14-million-revenue-grows-to-rm561-mln/

Scientex’s FY17 earnings outlook remains promising

October 3, 2016, Monday


KUCHING: Scientex Bhd’s (Scientex) financial year 2017 (FY17) earnings outlook has been viewed as promising, following a results briefing at the newly constructed biaxially oriented polypropylene (BOPP) plant in Pulau Indah.

According to RHB Research Institute Sdn Bhd (RHB Research), Scientex’s highly anticipated BOPP film plant, which would raise capacity ten-fold to 60,000 tonnes, come into operation in September.

“The new plant was part of a strategic alliance with Futamura to employ advanced Japanese film-manufacturing technology to produce high-quality BOPP films.

“As we understand, the BOPP film supply landscape in Malaysia presents promising market potential for Scientex, as the bulk of local demand for BOPP film is currently imported.

“Secondly, its state-of-the art BOPP facility would allow cost-efficiencies to ensure price competitiveness, while offering high quality films that local competition may lack,” the research house said.

On Scientex’s property division, RHB Research noted that new property sales rose a solid 30.8 per cent year on year (y-o-y) to RM794 million in financial year 2016 (FY16) (July).

“Management has plans to launch projects worth about RM700 million in FY17, after achieving targeted launches of approximately RM650 million in FY16.

“Going forward, management plans to direct its focus on affordable housing below the RM500,000 per unit mark, where demand for housing remains resilient,” the research house said.

It added that unbilled sales stood at RM717.2 million in FY16, compared to RM584.9 million in FY15, and would provide earnings visibility for the next few years.

Meanwhile, the research arm of TA Securities Holdings Bhd (TA Research) highlighted that# for the property segment, the group is looking to complete the Meru land acquisition in September 2016 with maiden launch to be held in the second quarter of 2017 (2Q17).

“This will help to boost the sales of the group from these new projects over medium to longer term,” TA Research said.

TA Research noted that the group will be focusing on improving efficiencies by reducing costs and wastage.

The research arm further noted that this could be achieved through better planning and systematic execution of works, coupled with better cash flow management to lower the financing cost.

After imputing FY16 results, TA Research tweaked its FY17-FY19 earnings estimates slightly upwards by 1.8 per cent/-2.1 per cent/0.9 per cent to RM311.4 million/RM363.1 million/RM379.3 million respectively, following some changes in key assumptions (which are revenue and operating expenditure (opex).

All in, TA Research maintained ‘buy’ on the stock.

On the other hand, RHB Research kept its FY17 to FY18F earnings relatively unchanged and introduced its FY19 projection.

It also maintained ‘buy’ on attractive valuations and exciting growth plans in Scientex’s manufacturing segment.


http://www.theborneopost.com/2016/10/03/scientexs-fy17-earnings-outlook-remains-promising/

Scientex starts operations of Malaysia’s largest BOPP film manufacturing plant

September 30, 2016, Friday

KUCHING: Global packaging manufacturer Scientex Berhad (Scientex) yesterday inaugurated operations of its new BOPP film manufacturing plant – the largest such facility in Malaysia in Pulau Indah, Selangor.

The new plant, boasting an annual production capacity of 60,000 metric tonnes (MT), was constructed in collaboration with Futamura Chemical Co., Ltd (Futamura), a leading plastic films manufacturer and the largest BOPP film manufacturer in Japan.

The plant was built at a cost of RM220 million, and is equipped with state-of-the-art machinery from Japan Steel Works Ltd, capable of wider-web and higher-speed film production.

The plant was officially opened by Deputy Minister of International Trade and Industry Datuk Ahmad Maslan in the presence of consular representative of Japan in Malaysia Kohei Nakamura, and Futamura president Yasuo Nagae together with Scientex chairman Tan Sri Mohd Sheriff Mohd Kassim, managing director Lim Peng Jin, and executive director Choo Seng Hong.

During the event, Lim said the plant inauguration marks an important milestone for Scientex, as it combines Japan’s technological prowess with Scientex’s manufacturing efficiency to produce high quality BOPP film for domestic and regional markets in Asia Pacific.

“We look forward to fulfilling anticipated strong market demand, as Malaysia presently imports most of its BOPP requirements due to a shortage in local supply.

“We also strive to capture new growth opportunities in the regional markets.

“This is certainly a pivotal moment for our consumer packaging business, as we are now one step ahead in realising our target of becoming a leading single-source provider of international-quality consumer packaging films in the region.”

BOPP film forms the protective outer layer of flexible consumer packaging, and is commonly used in the food and beverages industry.

Futamura holds a 10 per cent shareholding in Scientex Great Wall Sdn Bhd (SGW), the Group’s consumer packaging unit, and would purchase approximately one third of the new plant’s annual BOPP film production.

Lim said that the group is actively targeting growth in sales to local and regional players.

“We have been aggressively marketing our high-performance BOPP film to several packaging players both domestically and regionally, and have also conducted product trials with them.

“We are pleased to receive commendable feedback to date, and look forward to commence supply to them in the near term,” Lim concluded.

http://www.theborneopost.com/2016/09/30/scientex-starts-operations-of-malaysias-largest-bopp-film-manufacturing-plant/

Scientex 11.4.2016

Top Chart:  Chart of Revenue, PBT and EPS.over 13 years

Revenue = Red line
PBT = Green line
EPS = Blue line

Bottom Chart:  Chart of EPS, High Price and Low Price over the last 13 years

EPS = Brown line
High Price = Blue line
Low Price = Purple line

Scientex proposes 8 sen dividend for FY ended July 2012

Published: Tuesday October 23, 2012 MYT 5:09:00 PM

KUALA LUMPUR: Industrial packaging manufacturer and property developer Scientex Bhd has proposed a final single-tier dividend of 8.0 sen per share for its financial year ended July 31, 2012 (FY12).

The company said on Tuesday the final dividend would be paid on Jan 31 next year, when approved by shareholders at its AGM. This was in addition to a single-tier interim dividend of 6 sen per share paid on July 27, 2012.

Scientex said the total dividends of FY12 amounted to 14 sen per share, or a payout of RM30.1mil, which was 36% of Scientex's net profit of RM83.9 million for the year.

Scientex's group net profit rose 8.6% to RM83.9mil while group revenues increased by 9.6%to RM881.0mil, boosted by strong Asia-Pacific export sales experienced by the Group's manufacturing division, and the continued high margins and favourable product mix enjoyed by its property division.

Scientex - Return on Retained Earnings

Scientex
Year		DPS		EPS		Retained EPS
2002		1.4		2.9		1.5
2003		1.4		1.9		0.5
2004		1.4		8.8		7.4
2005		4.2		12.2		8
2006		5.2		14.5		9.3
2007		2.2		17.2		15
2008		5.2		16.9		11.7
2009		5.2		16.8		11.6
2010		8		26.2		18.2
2011		12		33.6		21.6
2012
Total		46.2		151		104.8
From	2002	to	2011
EPS increase (sen)				30.7
DPO				31%
Return on retained earnings				29%
(All figures are in sens)

Scientex (At a Glance)

Scientex	31.7.2011	31.7.2010	Change
Revenue	804.022	694.815	15.72%
Gross Profit	159.3	123.008	29.50%
Other Income	3.759	12.499	-69.93%
Operating Profit	97.437	70.046	39.10%
Finance costs	-1.573	-1.26	24.84%
PBT	96.64	70.753	36.59%
Income tax expense	-16.521	-8.613	91.81%
Earnings	80.118	62.14	28.93%
EPS (basic) sen	36	28	28.57%
NCA	444.069	435.676	1.93%
CA	281.005	239.386	17.39%
Total Assets	725.075	675.062	7.41%
CL	182.175	171.144	6.45%
NCL	36.778	53.121	-30.77%
Total Liabilities	218.985	224.265	-2.35%
Total Equity	506.121	450.796	12.27%
Total Equity and Liabilities	725.075	675.062	7.41%
Net asset per share *RM)	2.17	1.92	13.02%
Cash and bank balances	40.952	23.353	75.36%
ST Loans and borrowings	37.509	42.018	-10.73%
LT Loans and borrowings	10	26.168	-61.79%
Net Cash	-6.557	-44.833	-85.37%
Inventories	67.763	63.374	6.93%
Trade receivables	105.497	95.746	10.18%
Trade payables	136.721	125.184	9.22%
PBT	96.64	70.753	36.59%
OPFBWCC	118.915	90.431	31.50%
CFO	123.981	86.25	43.75%
Net CFO	110.941	78.137	41.98%
CFI	-39.682	-89.999	-55.91%
CFF	-53.666	19.596	-373.86%
Capex	-16.406	-24.017	-31.69%
FCF	94.535	54.12	74.68%
Dividends paid	-30.13	-10.77	179.76%
DPS sen	11	8	37.50%
No of ordinary shares	215.20	215.40	-0.10%
Net Profit Margin	0.10	0.09	11.42%
Asset Turnover	1.11	1.03	7.74%
Financial Leverage	1.43	1.50	-4.33%
ROA	0.11	0.09	20.04%
ROC	0.16	0.13	24.64%
ROE	0.16	0.14	14.84%
Price per share (2.3.2012)	2.55
Market cap	548.76
P/E	6.85
P/BV	1.08
P/FCF	5.80
P/Div	18.21
EY	14.60%
FCF/P	17.23%
DY	5.49%

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
15-Dec-11		31-Jul-12		1	31-Oct-11		213,762		21,390		9.59		-
28-Sep-11		31-Jul-11		4	31-Jul-11		205,200		21,788		9.66		-
21-Jun-11		31-Jul-11		3	30-Apr-11		217,312		21,138		9.48		-
15-Mar-11		31-Jul-11		2	31-Jan-11		194,886		19,736		8.86		-

Recent Financial Results

Announcement Date

Financial Yr. End

Qtr

Period End

Revenue RM '000

Profit/Lost RM'000

EPS

Amended

15-Dec-10

31-Jul-11

1

31-Oct-10

186,625

17,457

7.89

-

Year	Revenue	Earnings
2007	613.092	35.184
2008	656.596	47.698
2009	509.731	37.458
2010	694.816	60.318
2011	804.023	77.246
Year	EPS	net DPS	NA/share	ROE
2007	18.29	9.44	1.5	12.19%
2008	24.14	16	1.61	14.99%
2009	17.41	10	1.74	10.01%
2010	28	18	1.92	14.58%
2011	35.9	24	2.17	16.54%