Scientex Berhad has demonstrated robust financial performance recently, particularly in its property division. In the financial year ended July 31, 2024 (FY24), the company reported a 24.4% increase in net profit to RM545.2 million and a 9.8% rise in revenue to RM4.5 billion. This growth was largely driven by a 29.7% surge in the property segment’s revenue, reaching RM1.9 billion, attributed to higher sales, strong demand for new launches, and steady progress in ongoing projects across Peninsular Malaysia.  

In the first quarter of FY25, ending on October 31, 2024, Scientex maintained consistent group revenue of RM1.1 billion. The property division continued its upward trajectory with a 6% increase in revenue to RM483.7 million, fueled by steady construction progress and strong take-up rates in regions including the northern, central, Malacca, and Johor areas. However, the packaging division experienced a slight decline of 3.8% in revenue to RM625.7 million, impacted by softer export demand and unfavorable foreign currency exchange movements.  

Analysts have maintained a positive outlook on Scientex following its solid FY24 results. BIMB Securities, for instance, highlighted the company’s strong position in affordable housing and its commitment to sustainability. They maintained a ‘hold’ call with a target price of RM4.50, citing encouraging earnings growth prospects driven by property expansion and strategic land acquisitions. However, they also advised caution regarding the packaging segment due to weaker demand. 

Given the company’s consistent earnings and strategic focus on affordable housing—a sector with enduring demand—Scientex appears well-positioned for continued growth. However, the packaging division faces challenges that could impact overall performance. Market conditions, investor sentiment, and broader economic factors will also influence the stock’s performance in the coming days and weeks.  

It’s advisable to monitor ongoing developments in both the property and packaging sectors, as well as any company-specific news. Consulting with a financial advisor can provide personalized insights tailored to your investment goals and risk tolerance.