Scientex’s property arm to provide foundation for earnings growth

PETALING JAYA: Scientex Bhd’s property division will likely continue to provide a growth catalyst for its earnings while the plastics packaging business faces competition from foreign rivals, analysts say.

The company’s property segment has seen improving performance from higher progress billings and take-up rates of between 70% and 80% for its ongoing launches while its unbilled sales amounted to RM2bil.

Analysts believe the segment will continue to fare well due to resilient demand for affordable homes in Peninsular Malaysia.

“Scientex is also building recurring income via affordable hotels in Osaka, Japan, through a 50% joint venture, where five hotels have been acquired with plans to expand to 10.

“With around 98% occupancy and 40% to 50% operating margins, this venture provides a steady new earnings stream,” BIMB Research stated in a report following the release of Scientex’s results for the final quarter (4Q25) for its financial year ending July 31, 2025 (FY25).

Scientex’s FY25 core earnings of RM530.8mil were in line with expectations but 1% lower year-on-year (y-o-y) due to subdued contribution from its manufacturing division and a higher effective tax rate of 23.1% which offset the stronger performance delivered by its property segment during the year.

BIMB Research has a “buy” call on Scientex with a target price of RM3.91.