KUALA LUMPUR: Scientex Bhd, which recorded a net profit of RM142.65mil in the fourth quarter ended July 31 (4Q21), has proposed a final dividend of five sen per share.

       The flexible plastic packaging manufacturer and developer said the dividend would be subjected to shareholders’ approval at its upcoming annual general meeting.

       “Together with the 4.0 sen interim dividend paid on July 31, the estimated total dividend payout of RM139.6mil represents 30.5% of the group’s net profit in the financial year ended July 31 (FY21).

       “The group has a dividend policy to pay at least 30% of net profit since FY11,” Scientex said in a statement.

       In the 4Q, Scientex’s revenue stood at RM970.36mil against RM954.62mil in the same quarter a year earlier.

       Scientex’s net profit rose 17.2% to RM457.23mil in FY21 from RM390.11mil a year ago. Its revenue grew 3.9% to a record high of RM3.65bil against RM3.51mil previously.

       The group’s strong double-digit net profit growth surpasses its compound annual growth rate (CAGR) of 13.7% over the past five years.

       Its manufacturing segment contributed RM2.5bil or 68.1% of group FY21 revenue.

       It said the healthy sales for its industrial packaging products mitigated lower deliveries of consumer products to the food and beverage (F&B) and fast moving consumer goods (FMCG) sectors domestically.

       In the property development segment, Scientex recorded higher sales and construction progress of affordable homes in Malaysia, with the segment hitting RM1.2bil or 31.9% of group FY21 revenue.

       This 20.4% growth year-on-year from RM976.8mil was on account of stable construction progress and strong take up rates for new launches in several states.

       CEO Lim Peng Jin said despite the challenging operating environment in FY21, the group strived to ensure optimal operational uptime across its 17 manufacturing facilities in Asia Pacific and the United States while keeping all its employees safe.

       “We aim to continuously improve our capabilities and efficiency to reinforce our position as a leader in the Asia Pacific packaging market.

       “The privatisation proposal of our converting unit, Daibochi, will allow us to optimise its operations and corporate structure, to achieve greater production assurance and business continuity planning to serve global F&B and FMCG brands,” he said.

       Lim said Scientex’s property development segment had proven its strong customer appeal and inherent strength to register firm new sales and construction progress, supported by its in-house construction arm.

       “We are poised to meet this long term demand for affordable homes in Malaysia, and intend to launch RM2bil worth of homes in various states in FY2022, from RM1.5bil in FY2021,” he added.

       On its outlook, Lim said: “Due to market uncertainties posed by the ongoing Covid-19 pandemic, the manufacturing sector faces challenges such as fluctuations in raw material prices, rising logistic costs, and heightened financial market volatility.” “We will continue to manage these challenges vigilantly, whilst expanding our business in strategic areas, as well as develop more innovative and sustainable packaging solutions,” he said.

       “On the property development front, we have expedited progress after receiving approvals to commence works in line with the country’s National Recovery Phase.

       “We trust that our expansion plans thus far have positioned us well to capitalise on the expected increase in home purchases especially in the affordable price range,” Lim said.

       On Sept 13, Scientex proposed to acquire in cash all the remaining shares and warrants of Daibochi that it does not already own, at an offer price of RM2.70 per Daibochi share and 32 sen per Daibochi warrant, amounting to total value of RM345.3mil.