(SCI MK/HOLD/RM8.34/Target: RM7.80)

Scientex’s 3QFY17 results were within expectations. The strong performance from the property arm mitigated the lacklustre results from the manufacturing arm. We expect the manufacturing arm to fare better in 4QFY17 on narrowing losses from the BOPP plant which is running at an estimated 60% utilisation rate. The plant should contribute positively in FY18. Maintain HOLD with a lower target price of RM7.80, after adjusting for sharebase changes post private placement. Entry price: RM7.00.

Source: UOB Kay Hian Research - 21 Jun 2017