KUALA LUMPUR: Scientex Bhd's net profit rose 15.1 per cent in the second quarter (Q2) ended January 31, 2021 to RM112.17 million from RM97.47 million recorded a year ago.
In an exchange filing today, the global packaging manufacturer and leading property developer said higher earnings attributed to robust property sales and construction progress, as well as stable packaging segment contributions.
Its Q2 revenue eased 0.86 per cent to RM906.55 million from RM914.38 million due to steady construction progress of the Taman Pulai Mutiara 2 and Scientex Durian Tunggal townships, higher sales from seven new launches across Johor, Melaka, Selangor and Penang, as well as maiden contributions from Taman Scientex Kota Tinggi.
For the first half period, Scientex's net profit increased 14.7 per cent to RM204.70 million from RM178.44 million, while revenue reduced 4.5 per cent to RM1.71 billion from RM1.79 billion.
Chief executive officer Lim Peng Jin said the company's competitive position and high-efficiency practices allowed its property development to post positive trajectory while packaging achieved commendable results.
The plastic packaging sector has been facing several challenges amid the ongoing pandemic, including shortages in raw materials and shipping containers.
"Despite the resulting hike in resin price and surge in freight costs, we will embrace these challenges by focusing on improving operational efficiency and executing effective growth strategies.
"We are strengthening our position in supporting consumer-centric flexible plastic packaging for essential products, and expect demand to remain stable," he said in a separate statement today.
Lim said Scientex was forging ahead in the area of sustainable packaging while intensifying its collaborations with customers to expand its range of fully-recyclable, sustainable and value-added products.
"Our property segment continues to trudge forward in line with higher sales recorded compared to the previous year.
"This signifies the effectiveness of our strategy to continuously expand across Peninsular Malaysia and cross new boundaries, with recent maiden launches in Tasek Gelugor, Kundang Jaya and Kota Tinggi already contributing positively to our earnings."
Scientex launched seven property development projects in 2Q21 across Scientex Tasek Gelugor in Penang, Scientex Kundang Jaya in Selangor, Scientex Durian Tunggal in Melaka, as well as Scientex Kota Tinggi and Scientex Pulai in Johor.
These seven new launches feature close to 2,000 units of affordable two and three-storey homes, with a combined Gross Development Value of RM427 million.
In Q2 the Group completed the aquisitions of a 109-acre land in Seremban, Negri Sembilan and a 1,365-acre land in Jasin, Melaka.
Following this, the group expects to launch its first development on the Jasin land in the fourth quarter of the current financial year ending July 31, 2021 while the Seremban land is expected to be launched in early 2022, marking the group's maiden entry into Negeri Sembilan.
Altogether, the group's total landbank would increase to more than 5,800 acres across Johor, Melaka, Negeri Sembilan, Selangor, Perak, Penang and Kedah, which is sufficient for more than 10 years of development activities.
"Our latest ambitious landbank expansion initiatives would go a long way in helping us meet our goal of building 50,000 affordable homes by 2028, with more than 22,000 already built to date," he added.