Scientex / Lim Teck Meng

Re: Scientex

Postby winston » Sun Feb 05, 2017 9:59 pm

Lim Teck Meng & sons, Lim Peng Jin and Lim Peng Cheong
Scientex Bhd
Net worth: RM1.801bil

THE Lim family of Scientex Bhd is an example of how one can make a difference in a crowded field. The packaging industry that Scientex is deeply anchored is a sector where there are many players and virtually no barrier to entry. But under the stewardship of founder, Lim Teck Meng, Scientex is now among the top three producers of packaging materials in the world.

The growing demand for packaging products has seen the net worth of Lim, 79 and his sons, Lim Peng Jin, 49 and Lim Peng Cheong, 54 increase by 36.1% to a RM1.801bil last year - nudging them up to the 27th spot under Malaysia’s richest list for 2016, from their 35th position in 2015.

Diversified group Scientex is involved in industrial and consumer packaging, automotive interior, green energy products and property development businesses.

Strong demand for its packaging products in the past two years saw capacity expansion and margins improve. In the coming quarters, the outlook for this business segment is expected to improve through higher value products and improved product mix.

Scientex has a market capitalisation of about RM3.24bil and its share price to date is enjoying a good run-up of about 30% at RM7.00 against RM4.90 as at end-2016.

The testimony of Teck Ming and sons hardwork is the group’s nine manufacturing plants operating in Malaysia and Vietnam.

Last year, the group ramped up production via its brand new cast polypropylene and Bbiaxially oriented polypropylene (BOPP) manufacturing plants.

In addition, there are five property development projects in Johor and Malacca under the group’s wing.

Source: The Star
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Re: Scientex / Lim Teck Meng

Postby winston » Thu Oct 03, 2019 10:21 am

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Scientex

A beneficiary of trade diversion and ESG trend (aims to be a first mover for monolayered flexible packaging as soon as FY20), Scientex appeals for its 16% 3-year earnings CAGR and fairly defensive earnings base.

Resin prices have come off 16% yoy due to the global increase in petrochemical refinery capacity and the US-China trade war. The group is expected to partially benefit from low resin prices, particularly custom films which have a longer lead time of about 3 months as compared to stretch film’s 4-6 weeks. Based on our back-ofthe-envelope calculations, a 1% drop in resin cost will translate into effective savings of 0.4%.

Higher utilisation rates across its various manufacturing plants are expected to reap better economies of scale on optimal utilisation.

The group intends to launch RM1.3b of new properties in FY20 (FY19: RM1.1b launched with about 80% take-up rate), driven by steady demand for affordable housing. More than 60% of its housing units are priced below RM200,000.

We expect FY20 net profit to rise 15% yoy, driven by:
a) full-year contribution of newly-acquired subsidiaries - Daibochi and MPP
b) persistently low raw material costs and
c) higher progress billings from the property segment (record high unbilled sales of RM780m as of 4QFY19).

Source: UOBKH
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Re: Scientex / Lim Teck Meng

Postby winston » Wed Dec 18, 2019 4:28 pm

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Scientex to improve in coming quarter, says Affin Hwang

by Wong Swee May

KUALA LUMPUR (Dec 18): Affin Hwang Capital Research has maintained its 'buy' call on Scientex Bhd at RM9.53 with an unchanged target price of RM10.50.

And said Scientex's first quarter of financial year 2020 (1QFY20) core net profit growth of 45% was within market and its expectations.

In a note today, the research house said it expects stronger property billings and higher production volumes in the coming quarter.

For the manufacturing segment, it said Scientex is currently focused on ramping up its utilisation rate, with a target to achieve at least 70% in FY20 earnings (FY20E) (versus 1QFY20: 65%), driven by its biaxially oriented polypropylene plant and Arizona plants, and through higher process automation at its plants.

"We also learnt that Scientex has made further inroads into the US market, via the acquisition of stretch film plants in Lancaster, South Carolina State, Eastern USA (no machines installed yet)," it added.

Meanwhile, for the property segment, the research house said Scientex is acquiring 108.5 acres of freehold land in Seremban, Negeri Sembilan, for RM66.2 million, and 85.7 acres of freehold land in Kota Tinggi, Johor, for RM39.2 million.

"We are positive on Scientex's first foray into Negeri Sembilan with the Seremban land acquisition, given the land is near most hypermarkets and is easily accessible by the North-South expressway.

"The acquisition price for the Seremban land based on RM14 per square foot (psf) looks fair, similar to the recent land transaction median price of RM14 psf in Taman Bukit Galena," it said.

As for the Kota Tinggi land buy, Affin Hwang Capital Research said the acquisition price for the land is based on RM10 psf, which is lower than the median price transaction of RM12 psf in Kota Tinggi. The acquisitions will be funded by internally generated funds and bank borrowings.

Both lands are slated for a mixed development project, but further details such as total gross development value (GDV), development cost, commencement and completion dates are still at its infancy stage.

After the acquisitions, Scientex's landbank will increase to 3,990 acres, which will help to realise its Vision 2028 to deliver 50,000 affordable homes by 2028 (currently 18,500 units), said the research house.

Furthermore, Scientex yesterday reported its 1QFY20 core net profit, which rose 45% year-on-year (y-o-y) to RM83 million on higher revenue (+23% y-o-y) and higher earnings before interest, taxes, depreciation and amortisation (Ebitda) margin due to higher manufacturing margins with cheaper resin costs and better production efficiency.

"Notably, manufacturing segment earnings before interest and tax (Ebit) rose by 55% y-o-y to RM55 million, driven by continued demand from export (+9% y-o-y) and domestic markets (also partly lifted by subsidiary Daibochi's contribution).

"Elsewhere, the property segment's Ebit expanded by 58% to RM63 million from the steady progress billing recognised for its development projects," it said.

The research house also said Scientex's 1QFY20 core net profit fell 38% quarter-on-quarter (q-o-q) due to the high base seen in 4QFY19.

"With a sequential decline in 1QFY20's progress billing, we saw the property division's Ebit pulling back by 44% q-o-q to RM63 million.

"With 1Q being a seasonally weaker quarter, we are expecting upcoming quarters to see some improvement in property numbers, underpinned by current unbilled sales of RM700 million and the target GDV of RM1.1 billion," it added.

Source: The Edge

https://www.theedgemarkets.com/article/ ... ffin-hwang
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Re: Scientex / Lim Teck Meng

Postby winston » Wed Jan 22, 2020 9:33 am

not vested

Scientex (SCI MK)
Momentum To Continue


The 7% share price retracement from the recent peak provides an excellent opportunity
to accumulate.

Market conditions remain favourable for Scientex to beat consensus earnings expectations:-
a) plastic resin prices are low
b) Scientex is the first mover in launching monolamination packaging in Malaysia for its manufacturing division and
c) its property division has high unbilled sales and strong take-up rates.

Maintain BUY with an unchanged target price of RM10.67.

Source: UOBKH

https://research.uobkayhian.com/content ... 72fd1f5352
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Re: Scientex / Lim Teck Meng

Postby winston » Thu Mar 12, 2020 6:40 am

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Scientex 2Q net profit up 32% to RM97.4mil

KUALA LUMPUR: Packaging manufacturer and property developer, Scientex Bhd posted a strong set of financial results in the second quarter ended Jan 31,2020 (2Q20) with net profit up 32.2% to RM97.47mil and expects sustainable growth for the remaining financial year.

It announced on Wednesday its net profit was higher from the RM73.74mil a year ago driven by higher sales and favourable product mix in the manufacturing segment, as well as increased property development billings.

Its revenue increased by 19.3% to RM914.38mil from RM766.58mil a year ago while earnings per share were 18.91 sen compared with 15.08 sen.

Scientex said its revenue from the manufacturing segment revenue grew by 20.1% to RM659.40mil in 2Q20 from RM549.00mil boosted by higher sales volume of flexible plastic packaging (FPP) and contributions from the acquired converting businesses of Daibochi Bhd and Mega Printing & Packaging Sdn Bhd (MPP).

Its property development recorded RM255mi in revenue, an increase of 17.2% from RM217.60mil a year ago.

The better performance was due to growth in sales of affordable properties, steady progress billings from existing affordable township developments in various states in Malaysia, and maiden contribution from newly-launched Taman Pulai Mutiara 2.

In the first half, its net profit rose by 40% to RM178.43mil from RM127.41mil in the previous corresponding period while revenue increased by 21% to RM1.79bil from RM1.48bil.

Scientex CEO Lim Peng Jin said the group has built a formidable manufacturing base that produces a comprehensive range of FPP essential to many industries worldwide, and have significantly expanded its manufacturing footprint in Southeast Asia and the US.

He also said the group has been successful in building affordable homes for the Malaysian population via its townships in various states and have delivered more than 18,500 units and growing.

“We have continued to acquire new lands to support our future growth and bring the Scientex brand to various states in Peninsular Malaysia, and target to launch our maiden project in Penang and Kundang Jaya, Selangor in the second half of 2020, ” he said.

In the first half, Scientex purchased 455 acres for RM302.50mil. They comprised 86 acres in Kota Tinggi, Johor, 166 acres in Kundang Jaya, 23 acres in Meru in Ipoh, and 180 acres in Tasek Gelugor, Penang.

“We expect to register sustainable growth in the performance of our manufacturing segment in FY2020 on stable demand. That said, we are closely monitoring developments of COVID-19 which poses uncertainties in global markets, and remain focused on our long-term strategy to enhance production efficiency, ” he said.

Lim pointed out Scientex's affordable properties continue to benefit from resilient demand, and it was on track to launch projects with RM1.1bil in gross development value in FY2020. It launched RM447.50mil worth of projects launches in the first half.

“We are committed to bringing more affordable homes to the Malaysian population, and would continuously work towards maintaining competitive pricing through cost optimization while maintaining quality standards.

For instance, the standardisation of our building designs enables us to complete larger volumes of affordable homes at a quicker pace and at lower costs, thus reinforcing our efforts in making home ownership affordable for the masses, ” he said.

Source: The Star

https://www.thestar.com.my/business/bus ... o-rm974mil
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Re: Scientex / Lim Teck Meng

Postby winston » Thu Mar 12, 2020 9:47 am

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Scientex (SCI MK)
2QFY20: Another Good Set Of Results


Scientex’s 2QFY20 core net profit of RM99.8m (+20.5% qoq, +33.0% yoy) was supported by its manufacturing and property development segments.

Stronger utilisation rates across manufacturing plants enabled the group to achieve better economies of scale and higher margins, while its focus on affordable housing reaped outstanding results too.

We expect earnings momentum to continue amid the challenging global economy.

Maintain BUY. Target price: RM10.67.

Source: UOBKH

https://research.uobkayhian.com/content ... cc09afc408
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Re: Scientex / Lim Teck Meng

Postby winston » Thu Apr 16, 2020 10:15 am

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Scientex (SCI MK)
A Temporary Blip


Scientex has not been spared from the impact of COVID-19 as the MCO has reduced its
manufacturing workforce by half and temporarily paused property development activities.

Nevertheless, we foresee utilisation rate resuming post MCO and the affordability of its properties is expected to alleviate demand pressure from a broadbased slowdown in the economy.

We reduce FY20 and FY21 earnings forecasts by 10% and 3% respectively while maintaining BUY with a lower target price of RM9.90.

Source: UOBKH

https://research.uobkayhian.com/content ... 303d86098f
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Re: Scientex / Lim Teck Meng

Postby winston » Wed Jun 24, 2020 2:14 pm

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Kenanga upgrades Scientex to 'outperform', raises target price to RM9.70

by Emir Zainul

KUALA LUMPUR (June 24): Kenanga Research upgraded its call for Scientex Bhd to "outperform", from "market perform", at RM8.77 following the latter's better-than-expected earnings and top line for the cumulative first nine months ended April 30, 2020 (9MFY20).

The target price (TP) was also raised significantly to RM9.70 from RM6.50 previously.

Kenanga Research analyst Marie Vaz said Scientex's 9MFY20 core net profit of RM252.3 million came in above the research firm's expectations at 91%

"We believe the deviation was due to our conservative top line estimate that overly anticipated weaker contributions from both the property and plastic segments due to the Covid-19 pandemic," she said in a note today.

Given the stronger-than-expected earnings for 9MFY20, Vaz increased her FY20-21 earnings estimates to RM351 million-RM443 million on stronger property launches of RM1 billion-RM1.3 billion, from RM800 million-RM1.2 billion, and an increase in the manufacturing utilisation rate to 65% in FY20 from 60%.

"We are confident of our call given that Scientex has been able to weather the Covid-19 pandemic better than expected with its utilisation rate bouncing back to 60% currently, while we are confident of its ability to generate strong earnings growth year-on-year (+6%/+26% in FY20/21), cushioned by high margins of the property segment," she added.

Yesterday, Scientex announced that its 9MFY20 net profit rose 23.8% to RM248.06 million, from RM200.29 million, on the back of an 11.1% increase in revenue to RM2.56 billion from RM2.31 billion.

Scientex also declared an interim dividend of 10 sen, in respect of the financial year ending July 31, 2020 (FY20), to be paid on July 24.

It said the dividend payout of RM51.6 million amounts to 20.8% of its net profit for 9MFY20.

At 10.30am, shares in Scientex were trading up six sen or 0.68% at RM8.83 after 49,800 shares were traded.

Source: the Edge

https://www.theedgemarkets.com/article/ ... rice-rm970
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Re: Scientex / Lim Teck Meng

Postby winston » Mon Sep 21, 2020 9:30 am

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Scientex (SCI MK)
4QFY20: Above Expectations; Registered Record Quarterly Results


Scientex’s 4QFY20 results came in within our expectations with record high revenue and net profit, marking its 12th consecutive yoy earnings growth.

The outstanding performance was attributed to higher sales volumes, an improved sales mix and
efficiency of its manufacturing segment as well as decent take-up rates and stable progress billings for the property segment.

We upgrade FY21F revenue by 3% and roll forward our valuation to 2021.

Maintain BUY with a higher target price of RM10.43.

Source: UOBKH

https://research.uobkayhian.com/content ... dbcf9217b8
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