Highlights
KLSE: SCIENTX (4731)       SCIENTEX BHD MAIN : Industrial Products
Last Price Today's Change   Day's Range   Trading Volume
8.55   -0.04 (0.47%)  8.55 - 8.72  27,500
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Overview

Market Cap: 4,405 Million
NOSH: 515 Million
Avg Volume (4 weeks):208,855
4 Weeks Range:8.42 - 8.80
4 Weeks Price Volatility (%):
34.21%
52 Weeks Range:7.78 - 9.48
52 Weeks Price Volatility (%):
45.29%
Average Price Target: 9.27
Price Target Upside/Downside: +0.72

Financial Highlight

Latest Quarter | Ann. Date 31-Oct-2018 [#1]  |  28-Dec-2018
Next QR | Est. Ann. Date: 31-Jan-2019  |  22-Mar-2019
T4Q P/E | EY: 16.25  |  6.15%
T4Q DY | Payout %: 2.22%  |  36.07%
T4Q NAPS | P/NAPS: 3.5394  |  2.42
T4Q NP Margin | ROE: 10.29%  |  14.86%

Headlines

Date Subject
04-Jul-2019 Plastics & Packaging - Still Not Out Of The Woods
28-Jun-2019 【视频】森德 业务稳健维持买入
27-Jun-2019 Mplus Market Pulse - 27 Jun 2019
27-Jun-2019 Scientex Berhad - 9M19 Below Our Expectations
27-Jun-2019 Scientex - A Decent Set of Results
12-Jun-2019 【视频】森德购地价格合理
11-Jun-2019 PublicInvest Research Headlines - 11 Jun 2019
11-Jun-2019 Scientex Berhad - Foray Into Penang
15-May-2019 森德 购地加强房市地位
14-May-2019 PublicInvest Research Headlines - 14 May 2019
14-May-2019 Scientex - Acquiring Land in Kundang
09-May-2019 Stocks on Radar - Scientex (4731)
17-Apr-2019 上升股:森德阻力RM9.00
15-Apr-2019 (Forecast) BPPLAS (5100), SCIENTX (4731), SLP (7248), TGUAN (7034) Quarter Report PE and ROE
08-Apr-2019 高价买入森德……
05-Apr-2019 Plastics & Packaging - Still Cautious Over Margin Pressure
25-Mar-2019 Sclentex Bhd - A synergistic acquirer
21-Mar-2019 森德 产业赚幅下修30%
20-Mar-2019 Scientex Berhad - 1H19 Broadly In Line
19-Mar-2019 Scientex - Broadly Within Expectations

Business Background

Scientex Bhd manufactures and sells plastic products. The company also engages in property development. The firm's two segments are based on product type. The manufacturing segment, which generates the majority of revenue, sells plastic films and packaging products used to package consumer and industrial goods. The segment also sells plastic automotive interior components. The property development segment builds and sells housing primarily to low- and middle-income families. The majority of revenue comes from Asia.
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  5 people like this.
 
shpg22 Revenue and profit should be compare with the same quarter last year not the preceding quarter. Quarterly revenue/sales up by 8.3% YoY.

RainT sales drop due to progress billing of its property division
03/01/2019 12:34 PM
newbie4444 sifus why profit drop 39.21% QOQ 8.8 cheap?
03/01/2019 12:34 PM
RainT so that is why

this company profit is mainly from property

packaging biz profit margin is very thin only

high sales is from packaging biz while high profit is from property
16/01/2019 11:56 PM
RainT while this company profit is increasing (it is on property segment not the packaging biz)

while the expansion in USA look good (but contribute small profit only rather than property segment)

so you are buying into packaging biz or property biz ...
16/01/2019 11:58 PM
Chan Steven No need to comment. Just keep buying before the institutional funds pile in.
23/01/2019 8:39 AM
LouiseS Last 5 years EPS show significant fluctuation, range from 55 to 90sen per share, the PE ratio is high at 15, the ROE at 14%, and dividend yield at 2.27%.

https://louisesinvesting.blogspot.com/2019/01/preliminary-screening-of-counters-with_56.html
27/01/2019 7:34 AM
leslieroycarter The co is expanding fast ,likewise its overall revenue will double in another 5 years time giving an appreciation of 20 % pa.
30/01/2019 1:45 PM
RainT PE 15 is high ???

have u see other many companies PE is more than 15 & the share price still climbing
12/02/2019 9:16 AM
TrendTrader Technical Analysis on Scientex - https://www.trendtrading7.com/
06/03/2019 3:28 PM
Koyee Queue 2 days 8.40 no match so low volume anyone wants to sell? :)
08/03/2019 7:28 PM
Koyee got it yesterday @ 8.40
13/03/2019 1:22 PM
YAPSS Today, YAPSS will be covering Scientex Berhad's fundamental via a short animated video. Enjoy and I hope it helps! #FundamentalDaily010

Click the on the link below to find out more: 
https://www.youtube.com/watch?v=eARPQbSu0GM
13/03/2019 5:43 PM
witchjaz KUALA LUMPUR (March 19): Scientex Bhd's net profit in the second quarter ended Jan 31, 2019 (2QFY19) grew 8.5% to RM73.75 million from RM67.98 million a year ago, on higher revenue from better sales performance.
19/03/2019 3:57 PM
bullbullbully Something fishy going on....hmmmmm
05/04/2019 5:23 PM
azhanmatnordin Bear again
16/04/2019 12:03 PM
lai81533 Strong monentum
17/04/2019 8:06 PM
RainT this is property company or packaging manufacturing company ?
11/06/2019 2:21 PM
Jona0724 father start packaging, pass to son then start do property business. now is both, company grow up significant due to son.
12/06/2019 11:58 AM
leslieroycarter Property gains more ..
21/06/2019 3:30 PM
leslieroycarter Property to manufacturing by ratio 70:30 if not mistaken
21/06/2019 3:33 PM
shpg22 This company is another ultimate cash generating cow. Look at its cash flow.
26/06/2019 4:04 PM
shpg22 Maintained STRONG BUY at fair price of 10.00. The next MAHSING spotted.
26/06/2019 4:33 PM
tftey Profit mostly from Property, hence can't justified to trade at PE 15.
26/06/2019 5:07 PM
Ricky Yeo It is normal for manufacturing division to have lower profit margin than property division. But the asset turnover for manufacturing side is higher than property, hence results in a decent ROIC. But ROIC on property will still be higher nonetheless.

There is a good possibility for manufacturing's profit margin continue to improve slightly in the future as more of their sales shifted from industrial stretch films to food packaging, which is what they have been heading over the past 5 years.

Manufacturing is going to drive bulk of Scientex growth in the future. Property division will keep growing as they purchase more landbank to build affordable homes, but manufacturing will be the main driver through acquisition (whole flexible packaging industry around the world is consolidating), so company profit margin should track closer to manufacturing's profit margin down the line.
27/06/2019 8:17 AM
Ricky Yeo Another less talk about thing of Scientex is its efficiency. Without its ability to generate current level of cash flow, they won't be able to keep acquiring other companies, and without that, the growth would slow down dramatically.

Scientex isn't a company with massive moat, perhaps narrow moat based on economic of scale and a low cost producer by being as efficient in both property and manufacturing. Hence the reason to acquire companies to achieve EoS. On property end, Scientex embrace IBS because it save cost and can complete a property in less time. A typical landed house takes 24 months from start to completion and hand over, they do it in 16-18 months. Faster completion = better cash flow generation.
27/06/2019 8:28 AM
RainT have property segment to support the profit of SCIENTEX
27/06/2019 12:35 PM
RainT SCIENTEX = property company
27/06/2019 12:37 PM
Ricky Yeo My suggestion is this: Try to see things as it is, reduce categorisation. Why do human categories things? To reduce complexity and ambiguity. To make faster decision 'property company, worth PE XX; O&G: Cyclical etc". We do that to companies. We do that to ourselves. "I am a Value Investor", or "I am a growth investors". You put yourself in a box. Sometimes that works, but there is a great cost when things go wrong.

So see a company as it is. Without throwing them into buckets like property, O&G, tech etc. See it as it is by understanding the structure of the business and how much future cash flow can it can generate.
27/06/2019 12:55 PM
shpg22 Net Profit or should I say real cash is cash regardless of which industry. P/E is quite meaningless when view as a single entity.
27/06/2019 5:42 PM
leslieroycarter Fast growing company for manufacturing n property . Acquired property via allotment of shares or cash generated . In this way the debt ratio is kept in check . This counter will perform in good n bad times n thus holding the co for long term will save u the agony of fluctuation of stock prices daily .
28/06/2019 11:01 AM
(S=QR) Philip This sounds like a wise statement until you realize it is means exactly nothing and is a roundabout answer from someone who is more academically inclined than practical experience.

Investing is a concise, analytical activity. Why make it sound so mysterious and vaguely religious?

If you understand business, you will understand that there is no business on earth that has no competitors, peers or similar companies doing the same thing. In short, all business falls under a category or industry.

The challenge is to analyze a business and compare it to peers in the same category/industry/specialization and find out it's moat or competitive advantage versus it's competitors.

Simplified, how does it increase its profit and revenue and grow its market share. By taking it from other people in similar business.

Therefore: categorize.

For scientex you take all the film manufacturers in its industry and compare the costs to produce, the volume they produce versus the price to sell. Then you compare it with peers to understand how efficient they are as buyers will always buy based on a price/quality curve.

Then you take the properties they develop, find out the selling price, the average selling prices of housing in the area, then look at their location/average price and compare that with their profit margins vs that of other competing property developers. Then you will know exactly how efficient their property development eye, marketing and selling strength overall.

After you have dissected each of their business units and categorised each growth pattern Vs peers, they you can understand the entire company as a whole.

Reduce categorization? This is a very Buddha remark which I can't grasp. Investing is literally about picking up the best potential business based on current price/ future growth risk and comparing to every similar company in the category. I don't know any other way to value a business.

Can you elaborate on " understanding structure of the business?" And "seeing a company as it is?" Really interested to learn more.


>>>>>>>>>>>>>>

Posted by Ricky Yeo > Jun 27, 2019 12:55 PM | Report Abuse

My suggestion is this: Try to see things as it is, reduce categorisation. Why do human categories things? To reduce complexity and ambiguity. To make faster decision 'property company, worth PE XX; O&G: Cyclical etc". We do that to companies. We do that to ourselves. "I am a Value Investor", or "I am a growth investors". You put yourself in a box. Sometimes that works, but there is a great cost when things go wrong.

So see a company as it is. Without throwing them into buckets like property, O&G, tech etc. See it as it is by understanding the structure of the business and how much future cash flow can it can generate.
03/07/2019 7:05 AM
Ricky Yeo Why does investing has to be "comparing to every similar company in the category"? A dollar of investment is a dollar of investment regardless of whether that dollar is invested in a property stock or a packaging stock, so why do you want to compare [similar] company in the category?

Comparing similar companies in an industry is useful to create contrast, to find out what things a company is doing differently from others, but investing is not bounded by industry categorisation, but circle of competence.
03/07/2019 11:00 AM
deMusangking aiyoh, this is bursa, a battle ground leh!!!
dun give lecture here lah!!!!

haha
03/07/2019 11:01 AM
Ricky Yeo Welcome musang. Battle ground lol. Continue your battle. Go on.
03/07/2019 11:05 AM
deMusangking when u go to battle ground, u dun mke noise lah!! quiet quiet u go leh!!

haha
03/07/2019 11:06 AM
Ricky Yeo I didn't know it is a battle ground. Different perspective give you different illusions. Don't laugh too loud
03/07/2019 11:09 AM
3iii >>>

The risks in property development are:

1. Insufficient own capital to fund the project.
2. Over-leverage and excessive borrowings.
3. Poor sales for various reasons - poor location, industry related reasons.
4. Cyclical downturn.

Many property projects are launched in the cyclical upturn of the industry. Soon many more jumped in the game.

When the cyclical downturn comes, the weaker developers suffer.

>>>>



OTOH Scientex has done very well in the property development sector. It builds affordable houses which are in demand. Tremendous stewardship offered by the major shareholder in finding its own niche in this sector.
03/07/2019 11:13 AM
deMusangking Ricky Yeo I didn't know it is a battle ground. Different perspective give you different illusions. Don't laugh too loud
03/07/2019 11:09 AM
---------------------------------------------------------------------------------------------------
when go battling, u dun lauff lah!!! u must tiam tiam lah!!!!!\

haha
03/07/2019 11:17 AM
Ricky Yeo Thanks for your advice. Let me think about it.
03/07/2019 11:20 AM
deMusangking aiyoh, lecturer dun think so slow lah!!!!!
u must be teaching in low class uni !!!

haha
03/07/2019 11:22 AM
Ricky Yeo Thinking, Fast and Slow by Daniel Kahneman -recommended reading. Think as slow as possible.
03/07/2019 11:24 AM
deMusangking thinking slow is associated with big skull full of white matters but devoid of gray matters!!!!

but hope u not in the kategori!!!!!!


hahaha
03/07/2019 11:32 AM
Ricky Yeo Oh no, how did someone learn that kind of pseudoscience. Must be from the battles.
03/07/2019 11:38 AM
deMusangking pseudoscience???
show me authorities that say that??!!!!!!


haha
03/07/2019 11:59 AM
Ricky Yeo Should I trust Musang or Daniel Kahneman? - ah, this can be done in fast thinking. Thank you.
03/07/2019 12:15 PM
deMusangking Daniel Kahneman is so low, living on the ground!!!
and
musang is so high up!!! on tree tops!!!

so now u see who is who on the scale??!!!!!

hahaha
03/07/2019 12:17 PM
Ricky Yeo OIC
03/07/2019 12:55 PM
(S=QR) Philip Again with a roundabout Buddha remark. Obviously you have to compare with peers, otherwise how would you know if the company is a good company, a gruesome one, it a value trap if you do not have benchmarks.

How can you value a phone company without first having a benchmark in Huawei, apple and Samsung electronics?

If you do not use industry categorization to value, if you were a banker circle of competence, do you then use your banker mental models of accounting profits and losses only to invest in scentex?

If that is the case, I wish you all the best.

My advice, do not use circle of competence in one industry to benchmark returns in another.

Maybe you should stick to reading and not put money into the stock market. Your investing method would give you too many false positives, aka you won't realize the too good to be true investments, if you don't analyze the competitors and their returns out there.


>>>>>>>>>>

Posted by Ricky Yeo > Jul 3, 2019 11:00 AM | Report Abuse

Why does investing has to be "comparing to every similar company in the category"? A dollar of investment is a dollar of investment regardless of whether that dollar is invested in a property stock or a packaging stock, so why do you want to compare [similar] company in the category?

Comparing similar companies in an industry is useful to create contrast, to find out what things a company is doing differently from others, but investing is not bounded by industry categorisation, but circle of competence.
04/07/2019 7:58 AM
Ricky Yeo Perhaps you didn't read what I wrote clearly enough. I never said one shouldn't compare companies within an industry. Comparison between companies are good to understand business models, competitive advantage, market segments and what not.

But when you take that kind of categorial analysis between companies and bring it into valuation, what do you get? Relative valuation aka poor classification.

Please do wish me all the best. I have never used industry categorisation to value. Value comes from the future cash flow a business can generate, in that sense, industry categorisation is irrelevant. Well that goes back to my Buddha remark, do not categorise companies based on industry when doing valuation i.e Uber is a transport company, it should worth [transport industry peers multiples]. No, Uber is a tech company, it should worth [tech industry peer multiples]. Get the point?

Categorisation is also a problem in position sizing/capital allocation. And that is naturally the case when poor classification influence how one does valuation, which in turn influence how much money goes into a particular position.

"Maybe you should stick to reading and not put money into the stock market." - this sentence reveals you more than the advice itself.
04/07/2019 8:33 AM
(S=QR) Philip Advice given without experience is simply assumptions.
04/07/2019 5:34 PM


 

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