Posted by Desa20201956 > 2016-03-23 11:59 | Report Abuse

Even the analyst community has underestimated Scientex.

Lots of investors sold the share when a lot of the profits came from property development. But Scientex has turned a negative into a positive.

That is why I wrote also turning negative into positive.

The difference is in the details. Scientex did it well. Others could not do both well .

Scientex did not neglect its core business. It's core business continued to grow exponentially. ....it has excess cash. They can return all the excess cash to shareholders or they can find another business to invest in. They choose property development.

Most of the time, investor will sell the share, just like you. But Scientex did it so well, it becomes their strength now. That is the message in this write up.

The difference is sorely due to the competence of the management team.


There are many theorists who think a company should stay focused on what they do . Investors can do their own diversifications. But, in this case, Scientex choose to diversify and go the conglomerate route. You must remember Malaysia is a very small country. If they don't diversify , they will always remain a small and medium sized company.

Diversification is the only option left for a Board that wants to have double digit growth for 10 , 20 , 30 years.........I remain optimistic for the future of Scientex years down the road.....they will be able to find other ways to expand and be a true giant

Posted by 3iii > 2016-03-23 13:27 | Report Abuse

Has the potential to be the next Mah Sing.

Posted by Desa20201956 > 2016-03-23 15:44 | Report Abuse

Mah Sing is a one legged animal compared to a well balanced strategy that Scientex has.

Mah Sing princess inherit a company too reliant on condominiums...she has a tough time just standing still.

Posted by Desa20201956 > 2016-03-23 16:04 | Report Abuse

Excess cash they put into land. Their core business continue to fly.

This in a way is a dream share.

Investors reward them with PE of 14 while other developers gets single digit PE and even their plastic competitors gets a lower PE ratings.....

A case of 1 + 1 = 3