Scientex Berhad has recently experienced a decline in its stock price, which has raised concerns among investors. Several factors have contributed to this downturn, including a 6.7% decrease in net profit for the first quarter ended October 31, 2024, primarily due to lower profits from its packaging segment. 

Despite these challenges, Scientex has been actively expanding its property development segment, focusing on affordable housing—a sector with robust demand. Notable initiatives include:
• Land Acquisitions: The company has acquired significant parcels of land for mixed-property developments:
• 442.76 hectares in Muar, Johor, for RM200 million. 
• 826 acres in Kuala Selangor for RM335.68 million. 
• 350 acres in Johor Bahru for RM381 million. 
• 708.5 acres in Seberang Perai, Penang, for RM462.5 million. 

These strategic acquisitions align with Scientex’s goal to build 50,000 affordable homes nationwide by 2028. 

While the company’s aggressive expansion in affordable housing demonstrates a commitment to long-term growth, the immediate impact on its stock price remains uncertain. Factors such as the time required for project development, prevailing market conditions, and the performance of its packaging segment will influence short-term stock recovery.

Given these variables, it is challenging to predict with certainty whether Scientex’s stock will rebound within the next one to two months. Investors are advised to monitor the company’s financial performance, particularly in its packaging division, and stay informed about broader market trends when making investment decisions.