Packaging manufacturer-turned-developer Scientex Bhd which saw an increase in property sales for the second quarter that ended January 31, 2023 (2Q 2023) is looking to Indonesia for expansion.
"Our long-term vision is to expand our Scientex brand in Indonesia's property development sector and share our affordable housing knowledge, expertise, and experience in the region," its chief executive officer Lim Peng Jin said.
Lim said after completing nearly 28,000 reasonably priced landed homes totaling RM8 billion in cumulative gross development value (GDV) across Malaysia, the company is now prepared to launch a cross-border strategy to enter new markets in Southeast Asia and meet local demand.
Scientex's net profit for 2Q 2023 increased by 13.5 per cent to RM106.3 million from RM93.7 million a year ago, on a better product mix with consumer packaging, improved property sales, and steady construction progress.
Revenue for the period increased 2.8 per cent to RM978.4 million, from RM952 million previously, as higher contributions from the property division mitigated a slight dip from the packaging division in line with the global sentiment.
The property division posted 24.7 per cent higher revenue of RM323.3 million compared to RM259.2 million previously, on the back of improving sales and healthy construction progress, as well as positive demand for new affordable homes launched in Sungai Petani, Kedah.
The division is seeing strong take-up for the RM1.15 billion worth of affordable homes launched in the first six months of its current fiscal year across various states, namely Johor, Melaka, Selangor, Penang, as well in Kedah.
Scientex is making its first entry into Indonesia with a township of affordable housing that will have a gross development value (GDV) of US$19 million (about RM85.5 million).
The township, known as Graha Mustika Tamansari, is situated on 16.1 hectares of land in Bekasi, Greater Jakarta.
It entails the construction of 400 affordably priced landed dwellings, with completion set for 2025.
For the construction of this township, Scientex is teaming up with Mustika Land in Indonesia and Creed Group in Japan.
The company told the stock exchange recently that its subsidiary Scientex Quatari Sdn Bhd (STX) had entered into a JV with Indonesia's Mustika Land's unit PT Graha Mustika Tamansari, and Japan's Creed Group's unit Creed Property PH-1 Pte Ltd to form a JV company.
PT Graha will hold a 60 per cent stake, while STX and Creed Property will own 20 per cent each.
The JV venture will subsequently purchase land from PT Graha for the township's 4.9ha Phase 1 development.
According to the filing, the affordable houses are estimated to be priced at around 500 million rupiahs and will enable families residing in Bekasi who work in Jakarta's Central Business District and the close-by Cikarang-Karawang industrial district with a contemporary and comfortable place to live.
Lim said Scientex would provide its proven knowledge of creating excellent, cost-effective large-scale townships based on the company's home-grown building technologies.