Results Review

Scientex’s 1HFY15 (Jul) earnings of MYR72.1m (+13.7% YoY) were slightly below expectations, largely due to:

1. a realised forex loss of MYR9.2m from paring down of its USD denominated loans in 2QFY15, and
2. lower margins on  the  back  of  higher  sales  percentage  of  base  film,  which  is  a  lower-margin  product.

We  trim  our  earnings forecasts. Maintain BUY with a revised SOP-based TP of MYR8.20 (24% upside).

Source: RHB Research - 24 Mar 2015