KUALA LUMPUR, June 24 (Bernama) -- Scientex Bhd is anticipated to face a subdued earnings outlook for its packaging segment, primarily due to a weak export market and elevated energy costs, according to Kenanga Research.
On a brighter note, sales of its affordable properties would continue to be robust, the research house said in a note today.
“We like Scientex for its competitiveness in the global plastic packaging industry, given its size, low-cost structure, and strong foothold in the affordable housing segment in Johor.
“However, we believe valuations have become rich after the recent run-up in its share price. Hence, we reiterate our ‘underperform’ call on the company but raise its share target price by one per cent to RM4.00 per unit," it said.
Kenanga Research noted that Scientex’s acquisition of land in Muar, Johor is expected to be completed by the second half of 2024, and those in Bestari Jaya, Seberang Perai Selatan and Pulai by the first half of 2025.
Risks to its call include a stronger and sooner recovery in the global economy, easing input costs, and lower mortgage rates improving affordability for its properties.
At 10.36 am, Scientex's share price was three sen lower at RM4.26 with 58,800 shares traded.
-- BERNAMA
BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.
Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial
