PETALING JAYA: Scientex Bhd’s net profit for the first quarter ended Oct 31, 2017 rose 39.1% to RM72.40 million from RM52.06 million a year ago, thanks to better sales from manufacturing and property development.
Revenue increased 23.2% to RM658.68 million compared with RM534.68 million in the preceding year’s corresponding quarter.
Looking ahead, Scientex said its new stretch film manufacturing facility in Phoenix, Arizona, in the US remains on schedule to be commissioned by the first quarter of 2018. This plant is expected to play a pivotal and strategic role in the future as the group explores markets in the Americas with its close proximity to its customers and sources of raw materials.
With the various action plans and strategies that have been put in place in the past year to address the respective challenges faced, and with its overall capacity expansion being substantially completed, the group said it is optimistic for the current financial year.
Scientex noted that for the manufacturing segment, the group will continue to remain vigilant to external forces and risks such as resin price fluctuations, raw material supply constraints, developments of geopolitical nature as well as foreign currency rates fluctuations.
For property, the group’s focus on affordable housing will continue to dominate and lead the way to contribute to its sales revenue for the coming financial year. The Melaka Durian Tunggal land consisting of 197.4 acres is slated to feature affordable homes and is expected to be launched in the current financial year.
The newly acquired Rawang land measuring 65.3 acres was completed at the end of November. The group is optimistic that the strategically located land will be able to meet the pent-up demand for good and affordable housing in Rawang and the Klang Valley.
Scientex shares closed 2 sen or 0.23% higher at RM8.58 on 403,800 done today.
Source: The Sun Daily