Wednesday, February 12, 2014

SCIENTEX 森德綜合 (4731)

Company background

Scientex 45 years anniversary video

http://www.youtube.com/watch?v=y2VNuzwv7fI

 森德有限公司創辦於1968年，其創辦人是林德民，亦是林炳仁的父親。該公司最早期的業務為生產聚氯乙烯（PVC），其產品相當廣泛，延伸至消費者產品，如皮包、鞋子等等。然而，在林炳仁接管之後，逐步重組其業務，包括將其聚氯乙烯生產關注在汽車領域，以及擴充業務至包裝膜（Packaging film），如拉伸膜（stretch film）、布袋、PP捆紮帶等等，以及產業領域。

 現在，拉伸膜是該公司的核心業務，而該公司亦是全球十大拉伸膜（stretch film）產品製造商之一，並將在今年晉級為全球五大生產商。同時，該公司在2008年將其另一家上市子公司-森德包裝（SCIPACK）私有化和進行合併，並且將集團易名，加強整個集團的品牌和名聲，建立一個森德的概念。林炳仁表示，這項合併為該公司帶來顯著成果，尤其是效率方面。
http://www2.orientaldaily.com.my … H8M05GL577I2swB3Yv0 (May.2011 - FY2011)

Scientex started as a manufacturer of polyvinyl chloride (PVC) leather cloth and sheeting in 1968, and has since expanded and diversified into a multi-million ringgit corporation dealing with packaging solutions, polymer based products for automotive and general use, adhesives for flexible food packaging, as well as property development.

It was first listed on 2 February 1990 under the name of Scientex Industries. In 2004, one ofits subsidiaries, Woventex Corporation Berhad (listed on the Second Board in 1996) acquired the packaging business of Scientex through a rationalisation exercise and changed its name to Scientex Packaging Berhad. Subsequently, in March 2008, Scientex acquired back all the packaging companies and Scientex Packaging Berhad was delisted in April 2008. 
Scientex's core businesses are segregated into 2 strategic business units, viz. manufacturing and property development for efficient management. 

(Maybank research Aug.2011 - FY2012)

The company has also diversified into property businesses in 1993, with a few on-going mixed development projects mainly in Southern Malaysia. 

(Kenanga Oct.2012 - FY2013)

- The strategy did not develop overnight. At some point when the economic environment was conducive in the 1990s, the group owned some 80 companies, with businesses ranging from the manufacturing of woven bags, carton boxes, textiles to property development, and stretch film production. 
- “Everything was profitable in the mid-90s because prospects were rosy. “When the Asian financial crisis hit us in 1997, we saw the problem as some units made a profit while others made a loss,” he says. During his course in Harvard University, he learned about the importance of having a competitive edge in business. The company started its transformation from 2000 to 2005, which saw its 80 operating units consolidating into 30.
“We chose businesses that we wanted to grow and eliminated those that we wanted to cease.
- “From there, we chose packaging and property as our core businesses,” he says. It then channeled all the proceeds gained from its divestments into the two main segments. Currently, the company allocates its resources almost equally between the two divisions, he says.
http://www.thestar.com.my/Business/Business-News/2013/11/23/Scientex-aims-to-double-size-MD-Lim-says-the-firm-has-clear-direction-strategy-to-achieve-this-in.aspx/ (Nov.2013 - FY2014)

  ( RHBOSK March.2014 - FY2014)


Customers

  ( TA Securities Sept.2013 - FY2013)

Management
- 森德綜合（SCIENTX, 4731, 主板工業產品組）董事經理林炳仁表示，公司去年投資逾2千400萬令吉，為浮羅英達島的廠房增加生產線。他表示，目前，森德綜合是全球排名前10大的拉伸膜製造商，希望在新生產線貢獻下推動排名至全球前5名。

雖然森德的股價表現取得強勁的成長，但是該公司的交易量卻很低。在過去一年，其每日平均成交量只有23萬9299股，僅佔其繳足資本0.1%。對於這點，林炳仁亦相當認同，所以該公司在去年一改過去的低調風格，舉行了首個分析員匯報會。「在過去20年，我們都忙著整頓公司的業務，但是現在開始，除了加強業績表現之外，我們亦會逐步改善投資關係。」

然而，該公司的大股東持權率相當高，是不是使到交易量低的原因呢？根據股東資料顯示，該公司大股東-林氏家族，共持有60.07%股權。針對這項提問，林炳仁表示，雖然大股東持權率超過50%，但是他認為這不是影響交易量的主因。同時，他指出，不少公司的大股東持權率超過50%，但依然有亮眼的成交量。
因此，林炳仁認為，大股東持權率超過50%並不是最大的問題，低調的風格，才是導致該公司在投資市場知名度不高的原因。
http://www2.orientaldaily.com.my … 1iE0TYb5AiM21643S5o (May.2011 - FY2011)

 從日本留學回來的林炳仁，自1991年4月就到森德有限公司上班，對於管理公司和經營業務方面都有別於上一代的作風。提及與父親--林德民掌管公司手法的不同之處，這位第二代接班人微笑說：「由於我是海外留學生，所以比較注重財務報告和數據，如財務表現與關鍵指標（KPI）。至於上一代則較注重人性化管理，做事較重人情。」
http://www2.orientaldaily.com.my … dBJ03Aq5IF7251G9fw3 (May.2011 - FY2011)

 - 雖然伸縮薄膜的海外需求日增，但林炳仁承認，此領域正面對嚴峻挑戰，因膠乳價格波動激烈，以及匯率起伏不定。
http://biz.sinchew.com.my/node/55007 (Dec.2011 - FY2012)

 - Scientex Managing Director Lim Peng Jin said the enlarged entity will see approximately RM1.0 billion in sales, which effectively makes it one of the world's largest manufacturers and exporters of plastic packaging products. "It will also be earnings-enhancing – allowing the post-acquisition enlarged entity to benefit from cost savings as a result of economies of scale, in terms of operations and administrative efficiencies as well as in the procurement of raw materials," he said in statement. 
http://www.btimes.com.my/Current ... _html#ixzz28Eagv28b (Oct.2012 - FY2013)

 - “We are pleased to have received our shareholder’s approval for this corporate exercise as it marks the beginning of Scientex’s transformation in one of the world’s largest industrial plastic packaging players.” said Lim. Lim said the decision to tap into the F&B sector had always been of interest to the company since one of its chemical divisions supplied raw materials to food packaging businesses. 
- “Although all these years we have focused very much on the stretch film business, this FPP business is quite synergistic to what we do. We use similar raw materials, there are a lot of synergies with technology and machines, so there are a lot of benefits to combining.”
http://sg.finance.yahoo.com/news/scientex-eyes-combined-revenue-rm1-090005713.html# (Dec.2012 - FY2013)

 - 他也披露，长城塑胶工业是一家营运良好的企业，因此，运作方面不会有太大更动，並將保留所有员工。 另一方面，一名接近该收购案的知情人士披露，长城塑胶工业首席执行员林国文將在完成收购案后，持续在森德有限公司旗下执掌长城塑胶工业的原有业务。
- 此外，森德有限公司去年5月与三井化学集团合作，在马六甲设立生產太阳能电池封装片的工厂。
林炳仁披露，该工厂已在11月试跑，目前仍未確定能否在现財政年提供业绩贡献，但他对此长期投资的前景深具信心。
http://www.orientaldaily.com.my/index.php?option=com_k2&view=item&id=35735:&Itemid=198 (Dec.2012 - FY2013)

 - 森德有限公司董事经理林炳仁表示，对上述收购所得到的首批成果感到非常满意，亦表明两家子公司已顺利融入森德的大家庭。 他补充：「更令人振奋的是，森德有限公司目前处於高成长的趋势。我们相信，好戏还在后头。」
http://www.orientaldaily.com.my/index.php?option=com_k2&view=item&id=48019:&Itemid=198 (Mar.2013 - FY2013)
- “In the past 10 years, we have averaged a compound annual growth rate (CAGR) of 31% for profit after tax and minority interests and a CAGR of 16% for our revenue,” managing director Lim Peng Jin tells The Edge in an interview. “Now we are mapping out our plans for the next five years. Given our larger base, it will be hard to sustain the 30% growth rate, but we aim to maintain at least double digit growth,”

 - Lim and his family controls about 60% of Scientex. The 46-year-old has been with the company founded by his father for the past 22 years, and played a key role in transforming Scientex from a small PVC leather cloth manufacturer into a packaging manufacturer and property developer with RM1 billion in market capitalisation today. 


According to Lim, the group currently has two expansion plans in the pipeline.
By the end of the year, it will complete a RM45 million expansion of its stretch film capacity by 26% to 194,000 tonnes a year from 154,000 tonnes at its factory in Pulau Indah. This is on top of the additional 26% tonnage boost from the acquisition of GW Plastics. 
http://www.theedgemalaysia.com/highlights/253607-highlight-scientex-continues-aggressive-expansion.html (Sept.2013 - FY2013)
- Riding its strong operating cash flow, the group will be able to afford these expansion plans despite its 30% dividend policy and the fact that it had just spent RM283.2 million early this year to acquire GW Plastics, Lim says.

- “In the third quarter, including contribution from GW Plastics, we achieved an operating cash flow of RM50 million. This will be able to fund our expansion plans. Even after acquiring GW Plastics, our net gearing is only at 0.49 times or RM254 million in net borrowings. In simple terms, it means that we can pay off our borrowings in five quarters,” he explains. 

http://www.theedgemalaysia.com/highlights/253607-highlight-scientex-continues-aggressive-expansion.html (Sept.2013 - FY2013)
- “We are quite conservative, so we don’t chase high prices. We acquired the bulk of our landbank cheap during the Lehman crisis of 2008 and before the Johor property boom. During the crisis, we acquired land in Melaka, Skudai and Senai,” he says.  In fact, none of the group’s land cost exceeds RM10 psf, he reveals, with its land in Kulai costing RM3.50 psf, Senai about RM6 psf, and Skudai about RM9 psf.

http://www.theedgemalaysia.com/highlights/253607-highlight-scientex-continues-aggressive-expansion.html (Sept.2013 - FY2013)

 - 林炳仁说，「2013財政年，不但是公司欢庆45週年，同时也象徵公司迈入新的里程碑，营业额与净利取得创纪录的表现。这项成就显示公司旗下的製造与產业业务持续成长，以及近期完成的收购活动带来协同效应。因此，除了派发每股9仙终期股息，我们也宣布派发每股10仙特別股息，以纪念公司45周年庆。」
http://www.orientaldaily.com.my/index.php?option=com_k2&view=item&id=76249:19&Itemid=198 (Sept.2013 - FY2013)
- Based on the announcement, Seacera Polyfilms recorded revenue of RM44.5m and net profit (NP) of RM0.5m for the year ending 31st Dec 2012. However, we understand that the low NP figure was due to management fees owed to Seacera Group which would be reversed under the SSA. Assuming this to be the case, Seacera Polyfilm's NP would have been RM2.8m. This implies an acquisition PER of 14.3x based on the RM40.0m price tag, and a P/B of 2.1x. This is in line with the 14.4x PER paid for the acquisition of the Great Wall Plastic Industries earlier in the year. At the same time, the P/B of 2.1x is also equivalent to Scientex's current P/B, which we deem to be fair pricing.

 - 森德董事经理林炳仁说：“收购行动符合我们消费品包装业务的策略，有效扩大价值链，提供更多产品给下游客户，并加强我们的能力，以应付市场逐渐增加的需求。”
- “We never chased after high price (land). When market is good, we will focus on developing the land we have. When market is bad, there might be opportunities for us to expand our landbank,” he says. 
http://www.thestar.com.my/Business/Business-News/2013/11/23/Scientex-aims-to-double-size-MD-Lim-says-the-firm-has-clear-direction-strategy-to-achieve-this-in.aspx/ (Nov.2013 - FY2014)

- Scientex managing director Lim Peng Jin said the company, which is based here, plans to grow organically via mergers and acquisitions and by ramping up capacity at its manufacturing division and boosting its property division. "We are always on the lookout for opportunities to grow the industrial and consumer goods packaging sector in Malaysia and Southeast Asia, as well as the property business, especially in Johor. I call this Scientex's twin engines of growth," Lim told Business Times in an interview recently.
http://www.btimes.com.my/Current_News/BTIMES/articles/SCTEX/Article/#ixzz2lcRRgBT2 (Nov.2013 - FY2014)

- 森德公司在今日召开的股东特別大会上，通过了以工作表现为指標的股权配给奖励计划，让参与有关计划的主要管理阶层与员工，能够跟集团並肩同行，朝著在未来5年內，提高集团业务表现的目標前进。森德公司董事经理林炳仁在股东大会后表示，「当我们为集团在2013財政年取得12亿令吉营业额感到欣喜之际，我们也放眼未来。我们的下一个目標，是將我们的营运规模翻倍。」
- 他透露，这项股权配给奖励计划，是鼓励参与的员工朝向擬定的目標前进，而他们得到的报酬，则与他们付出的努力相称。
- 他说，「这项奖励计划能够鼓励个人和团队並肩前进，达至集团设下的业务成长目標之际，我们相信，它也能促使主要管理阶层和员工所努力的目標，与公司定下的各项目標一致。与此同时，身为股东的，也得以从未来几年的股息增长中，享有更高的投资回酬。」
- 在股权配给计划下，森德公司將以员工创造的附加表现作为基准，以相等的股权奖赏符合资格的员工。集团在这5年內配给员工的股权总数，將不会超过已发行股票和缴足股本的5%。
http://www.orientaldaily.com.my/index.php?option=com_k2&view=item&id=90160:5&Itemid=198 (Dec.2013 - FY2014)

- 董事經理林炳仁披露，有關資本開銷計約4千萬令吉收購Seacera Polyfilms有限公司、5千萬令吉用於長城塑膠（GWPLAST，5182，主板工業產品組）產能擴展，另3千萬令吉用於購買古來48.4英畝地段。
- 該公司目前是工業包裝製造業領導者，為亞洲最大、全球最三大的拉伸膜製造商；他說，預料公司在擴大產能後，年產能由15萬4千公噸增至19萬4千公噸，預料一至兩年會全面使用所有產能，放眼5年內業務規模翻倍成長。
森德董事经理林炳仁接受《南洋商报》专访时点出，首次举行周年庆是在5年前，当时欢庆40周年，也给自己定下5年期的目标，为森德指引更明确的方向。
“当时我们庆祝40周年之际，也定下5年企划，就是要把公司冲破十亿大关。因此，这次的庆祝，不只是庆祝45周年，也是庆祝我们的业务，成功突破十亿令吉大关。”
5年企划创下纪录，当然也是时候订立下一个5年后的新目标。
“我们现在希望能够继续增长，希望5年后能够达到现在的两倍。无论是在规模、营业额，抑或市值方面。”
林炳仁坦言，这目标对本身就宛如大马的“2020年宏愿”，属于长期目标。
“2018年，我们希望我们可以双倍增长现有业务。到时候，我们要再开心迎接50周年。”

 Scientex history!!!

森德公司旗下制造业务在2014財政年首6个月的营业额，从去年同期的3亿6620万令吉，增至5亿7770万令吉。若与2013財政年全年的9亿1880万令吉比较，2014財政年上半年的制造业营业额，已经超出去年全年制造业总营业额的60%。

森德公司董事经理林炳仁说，「当我们继续在制造业务取得令人鼓舞的表现之际，我们也通过成立森德长城有限公司(Scientex Great Wall)，整合所有旗下的消费品包装业务，为我们下一个成长阶段奠下基石。」

另一方面，森德公司位于柔佛的產业也持续吸引购屋者的青睞，推介中的產业都取得令人鼓舞的认购率，特別是森德士乃市的数个可负担房產计划，皆得到当地的热烈回响。谈及產业前景稍微疲软的趋势，林炳仁说，「森德公司拥有综合產业发展组合，因此我们的高档產业与可负担產业依然能够迎合目前的市场需要。」他补充道，「我们一贯的策略是由內部建筑商负责可负担房產的建设，以保有更高的利润；至於我们的高档產业也因为设计新颖，价格也比毗邻城镇的同等级產业较低，而持续取得不俗的回响。」
  ( RHBOSK March.2014 - FY2014)

林炳仁对本财年业绩表现表示乐观，应可超越上财年，并会继续为股东带来更多价值。他也认为，今年全球领域前景看俏，料需求稳定。“我们会专注在亚太和日本市场，暂时不放眼中国或印度人口较多的市场。”

 Scientex managing director Lim Peng Jin said while the demand for both industrial and consumer packaging products have remained intact, the group has also noted lower profitability, due to the adoption of a market penetration strategy to establish its presence in new markets across South East Asia. 
“We continue to take a long term view of the consumer packaging sector, and are progressing with our expansion plans, [and] in the long run, we expect these expansion efforts to enhance manufacturing efficiency and reflect favourably on our result,” he said in a separate statement today.
Scientex’s property segment recorded a 46.5% revenue growth to RM110.8 million, from RM75.6 million previously(Q12015 Aug-Oct2014), which was attributed to positive uptake of new launches and higher revenue recognition from ongoing developments, including new residential projects in Taman Scientex Senai, Johor Bahru.


 至于產业业务，森德公司將在未来专攻可负担房屋。林炳仁表示，该公司將在2015年推出总发展价值达6亿令吉的房產项目。其中可负担房屋和高档產业將分別佔2/3和1/3的份额，主因可负担房屋需求依旧强稳。森德公司也参与柔佛州可负担房屋（RumahMampu Milik Johor）计划。「在这项计划下， 我们预料，未来2年將在柔佛推出2000个可负担房屋单位，其售价將介於8万令吉至15万令吉之间。」该公司计划，在2015年4月份推介有关房產项目。

 Mr Lim Teck Meng has expressed his intention to retire as Director and Executive Deputy Chairman of the Company after having a succession plan well in place since 2001. The Board acknowledged the leadership and immeasurable contributions and guidance provided by Mr Lim for the past 46 years and conveyed its deepest gratitude and appreciation for his dedication, sacrifice and valued services and contributions made to Scientex Group.

展望未來，林炳仁表示，公司有信心2015年的製造業務仍取得不錯的表現與擴展，產業業務方面，未入賬銷售約6億令吉左右，可支持至2017年。

Competitor
(Kenange Oct.2012 - FY2013)




(UOB KayHian June.2015 - FY2015)

 Business





- Scientex has two main divisions, namely packaging/polymer manufacturing and property development. 
http://www.stocks-unleashed.com/2013/05/scientex-current-price-rm426-target.html

 - 該公司發表文告指出，工業包裝製造業務佔上半年營業額的74%，其餘則來自產業領域，錄得1億零80萬令吉銷售額。
http://biz.sinchew.com.my/node/45019 (Mar.2011 - FY2011)

 - About 80% of Scientex’s manufacturing revenues come from exports and the group’s overseas operations.
http://sg.news.yahoo.com/scientex-proposes-30-earnings-dividends-095045354.html# (June.2011 - FY2011)

 森德综合计划将明年的拉伸膜年产量，增至12万公吨，以成全球首5大拉伸膜制造业者。目前森德综合的拉伸膜产品，出口超过60个国家，有助多元化营收和在其他国家的市场，减低营收不稳定的因素。
http://www.nanyang.com/node/332457 (June.2011 - FY2011)

 - During 9MFY11, the property division earnings before interest, tax, depreciation and amortisation (Ebitda) expanded 103.2% y-o-y to RM46.5 million, due to higher revenue and better profit margins. As at April 30, 2011 the group’s four property development projects had a total gross development value of RM2.1 billion to last till 2019.
- Meanwhile, Scientex’s industrial packaging division posted an 8.6% y-o-y revenue growth to RM439.9 million for 9MFY11. While sales tonnage and profit for stretch film and strapping band increased, lower sales for other niche products together with higher raw material prices and the weakening greenback led to a 5.4% drop in the division’s Ebitda to RM41 million. 
http://www.theedgeproperty.com/mobile/module/mobile/article.php?id=7609&pid=2 (June.2011 - FY2011)

 - The property arm contributed 27% to the group’s total revenue for the year. Scientex had earlier said it plans to grow the property segment’s contribution to 30% by 2015. The group’s operating profits grew 39% to RM97.4 million, with the property segment contributing 63.6% or RM61.99 million to the group’s total operating profits. The remaining 39.4% came from the manufacturing division. 
http://scientex.com.my/web/pdf/scientex-news/20110929_EdgeFinancialDaily.pdf (Sept.2011 - FY2011)

 - Scientex saw operating profit contribution from its property division overtake its manufacturing unit for FY11 ended July 31. Property contributed RM62 million or 63% of the group’s total operating profit of RM97.4 million with the remaining RM35.4 million from the manufacturing of stretch film and strapping band. This came despite property contributing less to the group’s total revenue. Revenue from the property unit made up 27%, or RM218.56 million, of Scientex’s total revenue of RM804.02 million. This translated into an operating profit margin of 44.5% for Scientex’s property business, which is considered lucrative given its wide offerings between high-end and volume products. 

- “Scientex has also shown defensiveness in its property division with an almost full take-up of its developments,” the research house said in a recent note. “In addition, its high-end property developments command a strong 35% to 45% margin.”
http://www.theedgemalaysia.com/highlights/195116-scientexs-mixed-property-offerings-to-withstand-slowdown.html (Oct.2011 - FY2011)
- The manufacturing segment makes up almost 74% (based on FY11 performance) of the group’s total revenue. This proportion however is distorted by the higher operating cost incurred by its manufacturing division. PBT margin for its property segment is estimated at 28% which is significantly higher than its manufacturing division of only 6%. As such, this translates to a 62% and 36% operating profit contribution for both segments. 
(TA Securities June.2012 - FY2012)

 - Scientex has a cast stretch film facility in Pulau Indah, Selangor, which currently has nine production lines. Cast stretch film is mainly used for applications in the logistics and industrial sectors. The Group is in the midst of extending the plant – and the number of lines – that will lead to an annual production capacity of 150,000 MT by the second half of 2013. It has also acquired adjacent land for future expansion. 
- At present, GW Plastics has an annual production capacity of 28,000 MT of blown film and 34,000 MT of cast stretch film. Both facilities are located in Rawang, Selangor which has ample space for expansion as it owns an 11.3 ha piece of industrial land. 
- The Group is currently in the midst of adding 10,000 MT to its cast stretch film production capacity as well as adding other value-added converting lines for its blown film operations. 
- For its financial year ended July 31, 2012 (FY2012), Scientex recorded a group revenue of RM881.0 million, of which RM636.5 million came from its manufacturing business. GW Plastics, for its financial year ended Dec 31, 2011 (FY2011), posted group revenue of about RM344.1 million. 
- To fund the acquisition, RM83.2 million will come from internally-generated funds and the RM200.0 million balance via bank borrowings. This will increase Scientex’s net gearing level to 0.5 time from 0.04 time currently, which is within the Group’s acceptable range. 
http://www.btimes.com.my/Current ... _html#ixzz28Eagv28b (Oct.2012 - FY2013)
(Kenanga Oct.2012 - FY2013)

(Kenanga Oct.2012 - FY2013)

Manufacturing accounted for 72% of group revenue but only 44% of EBITDA while property contributed 56% of EBITDA and 28% of revenue.
(Maybank Oct.2012 - FY2013) 

 - 林炳仁披露，2012年所生產的95%的工業拉伸膜外銷和99%的PP打包帶，大部份銷往亞洲；其餘工業產品如PU薄膜貼合、貼合膜與汽車內部用膜多為外銷，預料此趨勢2013年持續。
http://biz.sinchew.com.my/node/71411 (Mar.2013 - FY2013)

 - This would also give Scientex a more diversified revenue mix where the stretch film would account for (42%), followed by the property segment (24%), Consumer packaging (17%) PP strapping bands (5%) and other polymer products (12%).
http://klse.i3investor.com/blogs/kenangaresearch/38902.jsp (Oct.2013 - FY2014)

 - Established in 1968, Scientex is a manufacturing company specialising in industrial packaging and consumer goods packaging. 
- It manufactures products such as PVC leather cloth and sheeting, stretch films, corrugated carton boxes, raffia, woven bags, adhesives, solar encapsulated film, strapping bands, stretch hood, wicket bags, shrink film and lamination base film used to wrap breads and other food products,
- The company also has operations in the property sector, especially in Johor and Malacca. 
- Its manufacturing and property divisions contribute 70 and 30 per cent to its revenue, respectively.
http://www.btimes.com.my/Current_News/BTIMES/articles/SCTEX/Article/#ixzz2lcRRgBT2 (Nov.2013 - FY2014)
  ( RHBOSK March.2014 - FY2014)

 The firm has factories in Malaysia and Vietnam as well as sales and marketing arms in Japan, Indonesia, and Singapore. Approximately 75% of its manufactured products are exported to over 60 countries worldwide.
http://www.theedgemarkets.com/en/article/scientex-2q-profit-higher-manufacturing-property-sales (March.2015 - FY2015)

Cost/Pricing

 對於生產包裝膜的公司而言，原料價格是相當重要的。然而，林炳仁表示，由於該公司有低成本的商業模式，一旦原料成本提高，他們亦會調高銷售價轉嫁成本，所以即使油價上漲，對他們的問題不大。
- 此外，雖然該公司是以出口為主的公司，但購買原料卻是以美元計價，所以美元走軟並不會為公司帶來很大的影響。他指出，在公司的成本當中，僅有10% 的成本是以令吉計算，剩下的都是以美元為主。
http://www2.orientaldaily.com.my … 1iE0TYb5AiM21643S5o (May.2011 - FY2011)

 - “That said, this business is susceptible to fluctuations in raw material prices, mainly resin,” he said. “Our mitigation strategy would therefore be to continue improving our cost efficiency by expanding our production capacity to achieve economies of scale and target to reduce per unit costs.”
http://www.theedgemalaysia.com/highlights/195116-scientexs-mixed-property-offerings-to-withstand-slowdown.html (Oct.2011 - FY2011)

 - Scientex’s manufacturing business could face foreign exchange (forex) risk as 80% of its products are exported and 65% of its purchases are denominated in the US dollar. 
- “Fortunately for us, both our export sales and purchases of raw materials are denominated in the US dollar, which acts as a natural hedge against forex fluctuations,” said Lim. 
http://www.theedgemalaysia.com/highlights/195116-scientexs-mixed-property-offerings-to-withstand-slowdown.html (Oct.2011 - FY2011)

 - 基於高達80%產品為出口，美元走疲已打擊該公司賺幅，但達證券預見美元之後調整，有望改善該公司2012財政年賺幅。
http://biz.sinchew.com.my/node/55376 (Dec.2011 - FY2012)
- Lim notes that both raw material costs and selling prices are denominated in US dollars, which means that the group has a natural hedge against the recent foreign exchange fluctuations. Operational costs, however, are still in ringgit, so the group should see a positive impact to its bottom line if the weak ringgit persists. 

 http://www.theedgemalaysia.com/highlights/253607-highlight-scientex-continues-aggressive-expansion.html (Sept.2013 - FY2013)
- On the recent petrol price increase, we make no changes to our forecast since petrol make up a small portion of the group’s overall cost. Bulk of the group’s energy cost comes from payment for electricity. 
  ( TA Securities Sept.2013 - FY2014)

- The electricity cost represents approximately 4% of the packaging operating costs.
http://www.investalks.com/forum/viewthread.php?tid=7419&extra=&page=27 发表于 2013-12-9 #ctyap

- 談到明年電費起價對其工業包裝製造業的衝擊，他說，公司首先儘量透過投資具產能效益配備達到能效，若不能吸納才決定調高價格，料會調高1至5%不等。他說，公司10間國內廠房用電額每月達300萬至400萬令吉，電費對工業包裝製造業售價的衝擊約為0.7%。
http://biz.sinchew.com.my/node/87213?tid=6 (Dec.2013 - FY2014)

- 电费明年开始涨价，森德（SCIENTX，4731，主板工业产品股）将会把额外的成本转嫁给客户，不过，产品的平均售价涨幅估计不超过1%。森德董事经理林炳仁表示，电费涨价1月生效后，他们会加入成本计算，再逐步调整产品价格。
- 目前，森德包装业务的现有8座厂房，每月电费总计高达400万令吉。
- “我们会良好管理（电费涨价的影响）。我们也会向客户解释此事。整体上，电费涨价对价格的影响，是不到1%。” 他指出，成本涨升和汇率等多重因素的影响下，森德都需要调整产品的价格。
http://www.nanyang.com/node/586773 (Dec.2013 - FY2014)

Natural hedge in place. Overall, SCI exports over 75% of its manufactured products to countries such as Japan, South Korea, Taiwan, Russia and Australia. All its export sales are denominated in USD. On the other hand, the group’s resin procurement, which makes up close to 65-70% of its manufacturing operating costs, is also denominated in USD. Ultimately, this forms a natural hedge, and earnings are, hence, less susceptible to fluctuations in the USD. As resin is a downstream petrochemical product, its cost has a positive correlation of 0.8 to the price of crude oil. In the event of sharp fluctuations in resin prices or the USD, SCI has a back-to- back arrangement with customers on potential price revisions and cost pass-through. 

  ( RHBOSK March.2014 - FY2014)

 Property GDV
Scientex ventured into property development in the mid-90s, starting with its flagship development in Taman Scientex Pasir Gudang (Johor) on about 1,000 acres. It has since acquired 637 acres of new land bank comprising 95 acres in Pasir Gudang in 2005, 250 acres in Kulai (Johor) in 2007, 136 acres in Ayer Keroh (Melaka) in 2009 and 156 acres in Skudai (Johor) in 2010. To-date, it has delivered 6,448 units of properties ranging from single and double-storey terrace houses to shop offices, cluster semi-detached units and 21⁄2 storey terrace houses worth a total of RM744m.

 The group has built a reputation as a leading property developer in Johor and Melaka, focusing on township development in Pasir Gudang and Kulai and higher-end niche projects in Skudai and Ayer Keroh. It enjoys healthy margins due to its cost efficiency. It has about 1,000 acres of land bank available for future development with current GDV of RM426m and pipeline GDV of RM1.6b lasting until 2019. Current unbilled sales of RM146m will boost property contribution to group profits from 53% in FY10 to 60% in FY11.



(Maybank research Aug.2011 - FY2012)

- As at April 30, the group’s four property development projects have a total gross development value (GDV) of RM2.1 billion, which was enough to last until 2019.
- Scientex said for the nine months to April 30 FY2011, its 145-acre project of mixed development of high-end residential and commercial PROPERTIES had become the second largest revenue contributor to the group’s property development segment - about RM46.3 million, or 29%, of the segmental sales of RM159.0 million.
http://sg.news.yahoo.com/scientex-proposes-30-earnings-dividends-095045354.html# (June.2011 - FY2011)

 - 因该公司在依斯干达区拥有1100英亩(440ha) 庞地库，可维持未来3年发展。一旦依斯干达区的发展成熟，相信产业业务在未来可创造高营收。
http://www.nanyang.com/node/332457 (June.2011 - FY2011)

 - "For the nine-month period ended April 30, 2011 (9MFY11), all of Scientex’s development projects in Pasir Gudang, Kulai, Skudai, and Melaka, continued to book in higher sales. Even the group’s new project in Skudai — Taman Mutiara Mas — recorded a strong takeup rate due to the rising demand for property in the vicinity of the Iskandar Region in Johor,” said Scientex managing director Lim Peng Jing in notes accompanying the results. 
http://www.theedgeproperty.com/mobile/module/mobile/article.php?id=7609&pid=2 (June.2011 - FY2011)

 - 森德综合（Scientx，4731，工业产品组）预计其进行中的21亿令吉产业发展计划，将使该公司至少忙碌至2019年。
- 在截至2011年4约30日止的首9个月中，位于柔佛士古来（Skudai），发展面积达58.7公顷的金珍珠花园（TamanMutiaraMas）产业发展计划，已成为森德综合产业发展业务的第二大营业额贡献者。这项高档住宅和商业产业的混合产业发展计划在首9个月中占该公司产业发展业务总销售额1亿5千600万令吉的29%，相等于4千630万令吉。
- 森德综合的另一些产业发展计划包括位于柔佛的巴西古当森德花园（Taman Scientex Pasir Gudang）和古来森德花园（Taman Scientex Kulai）以及位于马六甲的慕扎化高级住宅花园（Taman Muzaffar Heights）。
- 他说：“我们预计在2012年，产业发展业务对我们的营业额所作出的贡献，将从目前的25%进一步增至30%。”
http://www.uniteddaily.com.my/index.php?option=com_content&view=article&id=64311:2011-08-16-08-45-31&catid=46:2009-10-23-07-13-11&Itemid=75 (Aug.2011 - FY2011)

 - As at July 31, the group has projects in Pasir Gudang, Kulai, Skudai and Melaka with a combined gross development value (GDV) of RM1.9 billion to last until 2019. Lim said the property segment is expected to contribute positively to the group, with new projects in Skudai, Melaka, Kulai and Pasir Gudang expected to be launched soon.
http://scientex.com.my/web/pdf/scientex-news/20110929_EdgeFinancialDaily.pdf (Sept.2011 - FY2011)

 - The company’s volume products in Pasir Gudang and Kulai in Johor, said Lim, feature affordable double-storey terrace houses within the price range of RM110,000 to RM150,000 a unit. “Our property offerings for the mass market are typically within the price range of the ‘My First Home Scheme’,” he said. “We believe that some key pull factors for high-end property are concept, location and potential capital appreciation,” he told The Edge Financially Daily recently. 
http://www.theedgemalaysia.com/highlights/195116-scientexs-mixed-property-offerings-to-withstand-slowdown.html (Oct.2011 - FY2011)

 - According to TA Securities, Scientex’s property division currently has enough landbank with a total GDV of  RM2.1 billion to keep the company busy until 2019.
http://www.theedgemalaysia.com/highlights/195116-scientexs-mixed-property-offerings-to-withstand-slowdown.html (Oct.2011 - FY2011)

 - Going forward, Scientex has enough landbank to keep them busy until 2019, a total GDV of RM2.1bn.


 (TA Research Sept.2011 - FY2011)

 - 森德综合（Scientx，4731，主板工业产品股）独资子公司——Scientex Quatari私人有限公司，以4638万9000令吉收购Tropicana控股私人有限公司的70%股权。森德综合表示，公司将通过内部融资筹措上述资金。
- 公司说：“Scientex Quatari收购Tropicana控股的70%股权，符合该公司希望在策略地点扩充地库的计划，以供未来产业发展用途，以及拓展其在柔佛州马来西亚依斯干达发展区的业务运作。”
森德综合预计，上述收购活动将在截至明年7月杪财年内完成。
http://www.nanyang.com/node/406793?tid=462 (Dec.2011 - FY2012)

 - 達證券預期該公司將推出10至12項新產業計劃，估計發展總值介於2億至2億5千萬令吉。
- 4639萬收購Tropicana控股70%森德綜合今日公佈，以4千639萬令吉向3名人士收購Tropicana控股的70%股權，以取得柔州士乃約244英畝土地，在策略性地點擴大地庫供未來產業發展，以及拓展柔州伊斯干達發展走廊的商機。(66mil - 100%, 66mil / 244acres = 270,491/acre)
http://biz.sinchew.com.my/node/55007 (Dec.2011 - FY2012)

 - 產業組有18億令吉發展值，產業計劃集中在柔佛士古來與巴西古當、馬六甲的愛極樂，足以忙上9年。
http://biz.sinchew.com.my/node/58385 (Mar.2012 - FY2012)
- On its property division, the company still has a sizable outstanding GDV of RM1.8bn from its existing projects namely Taman Scientex Pasir Gudang, Taman Scientex Kulai, Taman Mutiara Mas (Skudai) and Taman Muzaffar Heights (Ayer Keroh), which could keep the company occupied until 2020. With the purchase of a piece of 244 acres of land in Senai, Johor in December last year for RM66mn, which is almost the size of its existing Kulai development, we can expect stronger earnings from property development although management did not indicate any time line as yet. 
(TA Securities June.2012 - FY2012)

 - 產业方面，森德有限公司在柔佛进行两项实惠型城镇计划--巴西古当与古来森德花园，发展总值达19亿令吉。而该公司也发展高档產业，如发展总值10亿令吉的士姑来帝雅园，以及3.1亿令吉的爱极乐慕扎化高级住宅花园。
http://www.orientaldaily.com.my/?option=com_k2&view=item&id=24180:12&Itemid=198 (Sept.2012 - FY2012)

 - Lim says Scientex believes its property division will continue to post double-digit growth as strong sales have been generated by its properties in Johor and Melaka. 

 - “There will be more variety in the properties that we will offer this year within our townships in Johor. For example, in Skudai, we are developing our first high-rise development. In Kulai, where we have been purely focusing on affordable housing, we are also building bungalows and other niche products to cater for the growing demand for luxury homes. “In Senai, we will be unveiling a mixed development of both residential and industrial projects,” he noted. Scientex’s bigest property development project is Scientex Pasir Gudang, located near Johor Baru and spanning 1,100 acres. The integrated self-contained township will comprise 13,400 residential and 424 commercial properties when fully completed.

 - To date, more than 7,000 residential,189 commercial and 84 industrial units have been completed and handed over to purchasers.
http://www.theedgemalaysia.com/highlights/230831-scientex-open-to-more-maas.html (Feb.2013 - FY2013)

 - As for its property sector, the group currently has a total GDV of RM4.65bn. Of which, RM581mn are ongoing projects and RM2.87bn are for future development. Its Senai development, which is expected to be launched mid this year, has a total GDV of RM1bn. This new development and the existing 4 land banks all located in Johor and Melaka and are expected to keep the group busy for the next 7-8 years. To date, the group has RM244 worth of unbilled sales. We are estimating sales over the next two years to mainly be driven by its Skudai development. We have estimated recognized sales amounting to RM157 and RM169 for FY13/FY14 respectively. 

  (TA Securities Mar.2013 - FY2013)

 - Demand continues to be good with take up rate for its launches ranging from 71 – 91%. Unbilled sales as at April 30th is at RM311.2m. Scientex is looking to launch its maiden commercial project in Senai, Johor of 40 units of cluster factories and 25 units of semi-D factories – GDV RM100m. In early 2014, it is planning to launch 6 blocks of high-rise mid-range development in Taman Muzaffar (1,100 units). Located next to Multimedia University (MMU), it would have a covered walkway to MMU. GDV expected – RM300m. 

   ( Jupiter July.2013 - FY2013)
- Meanwhile, on the property development front, Lim says, “We still have almost 1,000 acres to develop, so there is no urgency at the moment to acquire more land. Of course, we are still on the lookout for good opportunities if they arise,” he says.

 - The group’s current landbank has an outstanding estimated gross development value (GDV) of RM4.6 billion. With developments worth RM500 million in GDV carried out each year, the landbank will last 10 years, he explains. 
- “We are quite conservative, so we don’t chase high prices. We acquired the bulk of our landbank cheap during the Lehman crisis of 2008 and before the Johor property boom. During the crisis, we acquired land in Melaka, Skudai and Senai,” he says.  In fact, none of the group’s land cost exceeds RM10 psf, he reveals, with its land in Kulai costing RM3.50 psf, Senai about RM6 psf, and Skudai about RM9 psf.

- Last year, the group launched 15 projects and plans to launch another 13 over the next year, with an estimated GDV of RM600 million. In Pasir Gudang and Kulai, the group has been successful in developing double-storey affordable housing with a nearly 100% occupancy rate, says Lim.
- The group’s flagship development will be in Skudai, where it has launched its maiden high-rise project, the Garden Residences in Taman Mutiara Mas. In Skudai alone, the group has ongoing and newly launched projects worth RM456 million in GDV. These projects have a 75% take-up rate, excluding the bumiputera units that are pending release.

 - Over in Senai, the group is developing factories targeted for light industry and small medium enterprises. The project has a GDV of RM100 million.
http://www.theedgemalaysia.com/highlights/253607-highlight-scientex-continues-aggressive-expansion.html (Sept.2013 - FY2013)

   ( TA Securities Sept.2013 - FY2014)

- Scientex Bhd enlarged its landbank in Iskandar Malaysia after agreeing to buy two pieces of freehold land measuring 48.4 acres in Kulai, Johor for RM28.5mil.
- With this latest acquisition, the company’s total undeveloped landbank now stands at 1,025 acres – 922 acres within Iskandar Malaysia in the Senai, Skudai, Kulai and Pasir Gudang, and the balance 103 acres in Malacca.
- It says it intends to launch affordable landed residential projects on the lands situated 1km from Kulai town and close to the North South Expressway.
- “Even before this new acquisition, our landbank is sufficient to sustain the group for the next 10 years. We have a pipeline GDV (gross development value) of RM4.6bil, comprising high-end and affordable residential properties, as well as commercial and industrial product offerings,” managing director Lim Pen Jin said.
- “At the moment, we are undertaking projects worth RM836mil GDV on our existing Pasir Gudang, Kulai, Skudai, Senai and Melaka lands, and intend to launch projects worth RM600mil GDV in the financial year ended July 31, 2014.”
- In the financial year ended July 31, 2013, Scientex’s property division contributed revenues of RM310mil, or 25%, of total revenues of RM1.2bil. In terms of earnings, it contributed RM98.7mil, or 67.6%, of the company’s operating profit of RM146.1mil.
http://www.thestar.com.my/Business/Business-News/2013/09/27/Scientex-buys-48-acre-Iskandar-land-for-RM28mil.aspx/ (Sept.2013 - FY2014)



(Sept.2013 - FY2014)

- 森德（SCIENTX，4731，主板工业股）在今天宣布以2850万令吉代价，收购位于柔佛古来两块持有永久地契的地皮，以进一步扩大该公司在依斯干达特区（Iskandar）的地库。
- 森德在文告中表示，该两块地皮占地48.4英亩（19.6公顷）永久地契，这项收购將通过內部资金融资。
这两块地皮毗邻森德在古来的另一项发展计划，即占地250英亩的古来森德花园（Taman Scientex Kulai）。
http://www.orientaldaily.com.my/index.php?option=com_k2&view=item&id=76384:2850&Itemid=198 (Sept.2013 - FY2014)

- Scientex has a total pipeline GDV of RM4.8b based on the existing 1,025 acres of landbank - 90% of which are located in prime locations in Johor, which has seen 20%-100% surge in YoY property sales. Furthermore, Scientex's remaining landbanks are undervalued at an average cost of RM6 psf against the current valuations of "greenfield" landbanks of RM8-10 psf. This would allow Scientex to reap higher margins vs its peers with gross margins reaching as much as 55% for its current project in Skudai (Note that the property development segment gross margins has expanded from 34% in FY09 to 47% in FY13).
http://klse.i3investor.com/blogs/kenangaresearch/38902.jsp (Oct.2013 - FY2014)

- Since Budget 2014 saw the introduction of a number of cooling measures in the property market, Scientex still sees strong demand for its recent launches. According to Lim, all the terrace houses, priced between RM200,000 and RM220,000, totalling to 171 units for its Senai project, have been sold. “Last Sunday, we launched our new serviced apartments (The Heights Residence) in Malacca, where more than half of the units offered were taken up,” he adds. The average selling price for the apartments, within walking distance to the Multimedia University Malacca campus, is RM300,000.
- It has a total gross development value of RM7bil and has recognised RM1.8bil of that amount. Its property sales last year amounted to RM300mil and the remaining RM5.2bil will last it for 10 years, Lim says.
- “We never chased after high price (land). When market is good, we will focus on developing the land we have. When market is bad, there might be opportunities for us to expand our landbank,” he says. Due to its good cashflow, Scientex will continue to look for more land with an aim to cover more locations especially in Johor where is has established a network across the state.
http://www.thestar.com.my/Business/Business-News/2013/11/23/Scientex-aims-to-double-size-MD-Lim-says-the-firm-has-clear-direction-strategy-to-achieve-this-in.aspx/ (Nov.2013 - FY2014)

- He said Scientex, which started its the property business in 1995, has a landbank of 810ha, mostly in Johor, with total gross development value of RM7 billion. This is expected to keep it busy for the next 10 years.
- It builds affordable homes, commercial and industrial lots.
http://www.btimes.com.my/Current_News/BTIMES/articles/SCTEX/Article/#ixzz2lcRRgBT2 (Nov.2013 - FY2014)

- 產業發展業務目前有2千英畝地庫，尚有1千英畝有待發展；發展總值達70億令吉，預料可忙上10年，
前已實現發展值達20億令吉
http://biz.sinchew.com.my/node/87213?tid=6 (Dec.2013 - FY2014)
SCI’s property development division is currently sitting on an undeveloped 990 acres of landbank, with a remaining GDV of MYR4.4bn to be developed over the next 10 years. Most of its property projects are Johor-centric, ie the group’s starting base. Currently, SCI has ongoing developments in Pasir Gudang, Kulai, Skudai and Senai (all in Johor) as well as Ayer Keroh, Melaka. 
  

SCI is looking at new launches with a GDV of MYR600m in FY14. Despite the various measures to curb property speculation announced in Budget 2014, management remains adamant that sales will be driven by its targeted approach for each of its projects. Meanwhile, the group’s unbilled sales of MYR406.9m as of Oct 2013 will also help provide a safety buffer. 




( RHBOSK March.2014 - FY2014)

Manufacturing - stretch film/strapping band


(Investor presentation 9MFY2015)

Scientex has evolved into one of the largest industrial packaging companies in Asia and is amongst the top-10 stretch film producers in the world with a 3% market share. It is also one of the largest producers of strapping bands globally. The group also manufactures other industrial products such as automotive interiors, carton boxes, woven bags, raffia, rigid film, carpet mats and PU adhesives (used for lamination of plastic film, paper, aluminium foil). These niche market products have lower growth but higher margins and good cash flow. 

Its manufacturing division comprises two business units namely packaging and polymer. The packaging unit manufactures various packaging products designed for outer, middle and inner packaging applications:
  1. Outer packaging – Stretch Film, Stretch Hood, PP Strapping Band, HDPE and PP Tying Tape (Raffia);
  2. Middle packaging – Woven Bags, Bulk Bags (FIBC) and Corrugated Carton Box;
  3. Inner packaging – Adhesives, Lamination Film and PVC Rigid Film Packaging.
The group has manufacturing facilities in Malaysia and Vietnam as well as sales and marketing offices in Indonesia and Japan. More than 78% of its manufacturing products are exported to over 60 countries worldwide. 



The polymer unit specialises in the manufacturing of PVC leather cloth, PVC/PP and PVC/PE foam, and TPO/PP foam sheets for automotive instrument panels, door trims, and roof lining for car manufacturers in the Asia Pacific region. In addition, it also supplies tufted carpet mats to automotive manufacturers in the Asia Pacific region.


(Maybank research Aug.2011 - FY2012)

- 同時，他亦強調，隨著今年7月安裝和開始運作第9條拉伸膜生產線，將其每年的產能從現在的10萬公噸，提高至12萬公噸，讓該公司晉級至全球五大拉伸膜產品製造商之一。
http://www2.orientaldaily.com.my … dBJ03Aq5IF7251G9fw3 (May.2011 - FY2011)

 - 林氏表示，一旦森德综合位于巴生英达岛（Pulau Indah）的伸展膜（stretchfilm）制造厂于今年10月开始运作后，这项业务将可获得持续性成长。他也指出，森德综合也将进军诸如日本及韩国等远东市场、欧盟国家及澳洲纽西兰等海外市场。
http://www.uniteddaily.com.my/index.php?option=com_content&view=article&id=64311:2011-08-16-08-45-31&catid=46:2009-10-23-07-13-11&Itemid=75 (Aug.2011 - FY2011)

 - For its manufacturing line, Scientex will raise production capacity to 120k MT, or a 20% increase by FY12 which will put Scientex as the fifth largest stretch film producer in the world. It will also increase its strapping band production capacity to 24k MT by end-2011, or a 50% growth.
- Over the long term, Scientex has entered into an S&P agreement for the purchase of land opposite its current facility for RM12mn. Thus, we expect capacity to double- up in 3-5 years time. 
(TA Research Sept.2011 - FY2011)

 - Scientex has plans for further expansion in production capacity in Pulau Indah, Klang. According to TA Securities, Scientex is raising production capacity to 120,000 tonnes, or a 20% increase by FY12 that would make Scientex the fifth largest stretch film producer in the world. The company also plans to increase its strapping band production capacity to 24,000 tonnes by the end of this year(end-2011), or 50% growth.
- “We have begun to introduce thinner gauge film with superior technology, that reduces the usage of raw materials yet maintains the same quality and functionality of films,” said Lim.
http://www.theedgemalaysia.com/highlights/195116-scientexs-mixed-property-offerings-to-withstand-slowdown.html (Oct.2011 - FY2011)

 - 森德综合（SCIENTX，4731，主要板工业）将斥资4000万至5000万令吉，最快明年中在本地设新厂房设备。新厂房将建在现有厂房对面，预计最早明年中、最迟2013年可开始建筑工程。该公司董事经理林炳仁今日出席年度股东大会后指出，此计划仍在初步策划阶段，现有厂房亦已增设额外两条生产线扩产。
“新厂房竣工并投入生产后，公司产能料从现有每年12万公吨产能增加至少30%。” 公司文告指出，公司耗资1600万令吉资本开销，在英达岛增设的第九条生产线已正式投产，产能因此提高20%至现有12万公吨水平。林炳仁指出，伸缩薄膜（stretch film）需求提高，扩产势在必行。
http://scientex.com.my/web/pdf/scientex-news/20111216_ChinaPressOnline.pdf (Dec.2011 - FY2012)

 - 森德綜合最近收購了一塊毗鄰現有工廠和面積相同的地段，因此在3至5年內將可令產量增加一倍。該公司計劃在2012年中花費4至5千萬令吉以興建新廠。
http://biz.sinchew.com.my/node/55007 (Dec.2011 - FY2012)

 - 森德綜合努力擴大製造業活動，特別是保鮮膜包裝產能自去年9月增至每年12萬公噸，基於需求殷切預測將繼續擴展。新近收購巴生岸外英達島12.5英畝土地，也將作新生產基地。
http://biz.sinchew.com.my/node/58385 (Mar.2012 - FY2012)

 － 森德綜合（SCIENTX，4731，主要板工業）整合業務，計劃增設2條伸縮薄膜（stretch film）生產線，待明年(Mar & Mid of 2013)正式動工，可將每年產能增至15萬公噸。該公司董事經理林炳仁今日透過文告指出，將透過內部融資方式，取得增設生產線所需的資本開銷。“一旦明年正式動工，公司在英達島的工廠伸縮薄膜生產線將增至11條，有助推高每年產能，至15萬公噸；現有產能為12萬公噸。”
－ 他說，森德綜合去年9月，剛在該廠房啟動第9條生產線的增設工程，今年2月則在馬六甲廠房增設2條伸縮薄膜生產線(PP Strapping Band)。
－ “這一連串擴充產能計劃，確助公司提升效率，同時應對上揚的市場需求，受益于積極擴充計劃，旗下製造業在2012財年第3季，成為盈利最大貢獻者，約貢獻逾70%營業額。”
http://www.chinapress.com.my/node/330516 (June.2012 - FY2012)

 - We are optimistic with the group’s performance going forward as the group continues to show its commitment to increase its manufacturing capacity with another two more packaging lines expected to come in March 2013 and mid of next year. With both lines, its packaging capacity is expected to increase by 25% next year. 
(TA Securities June.2012 - FY2012)

 - New sources of income to come in from its JV with Mitsui Chemicals to produce ethylene vinyl acetate encapsulating sheets for solar cells which is expected to commence operations in August this year with an initial production capacity of 7kMT/yr. However, we(TA Securities) have yet to incorporate its earnings into our forecast due to lack of pricing info. 
(TA Securities June.2012 - FY2012)
- From our meeting, we gathered that the company is currently looking to add two more stretched film lines at its Pulau Indah plant in addition to its existing 9 production lines. Both lines are expected to increase capacity by a further 22% for this segment alone. The additional lines are only expected to begin commissioning in March and the middle of next year hence contributing from FY14 onwards as the group’s financial year end is in July. 

 - The new lines will be fitted in its existing plant in Pulau Indah where the other 9 lines are located. This will bring its existing factory close to full capacity. Despite the full capacity of its plant in Pulau Indah, we do not foresee the group slowing down, as it has been expanding its stretched film business since 1998. The purchase of land adjacent to its existing plant will cater for any future installation of new lines for its stretched film segment which currently contributes an estimated 50% of the group’s overall manufacturing segment.

 - 2 new strapped bands were installed at its Malacca plant February this year thus increasing capacity by a total of 24kMT/year.

 - Furthermore 1 stretched film line was added in September last year raising the capacity to 120kMT/year which is an increase of 12.5% in capacity, making it the 5th largest stretched film producer in the world. Both its stretched film and strapped bands make up almost 65% of its manufacturing revenue.

(TA Securities June.2012 - FY2012)

- Scientex exports almost 99% of its stretched film and 95% of its PP strapping bands. We also like its recent move to relocate its woven production plant to Vietnam in order to reduce cost. We expect to see some improvement in margin going forward. 
(TA Securities Sept.2012 - FY2012)

 - 该集团有意在未来数年將拉伸膜生產线的年產能將推高至15万公吨。除了国內业务，森德有限公司也在印尼与越南生產及销售其它工业用品如汽车內饰、瓦楞纸箱、粘合剂、酒椰纤维及无纺布袋等。
http://www.orientaldaily.com.my/?option=com_k2&view=item&id=24180:12&Itemid=198 (Sept.2012 - FY2012)

 - Scientex proposed to acquire 88 million shares of Great Wall Plastic Industries Bhd and 6.0 million shares of GW Packaging Sdn Bhd to increase its annual production capacity for cast stretch film from 120,000 tonnes to 154,000 tonnes.
http://www.thestar.com.my/story.aspx/?file=%2f2012%2f10%2f4%2fbusiness%2f20121004092258&sec=business (Oct.2012 - FY2013)

 Scientex is one of the world’s top five stretch film manufacturers, capable of producing 120,000 metric tonnes of packaging film per year, from its plant in Pulau Indah, Selangor. 
Already committed to boosting its stretch film capacity even further, the group is adding another two production lines at the plant, which would augment the existing capacity by an additional 30,000 metric tonnes by the second half of next year.
http://www.btimes.com.my/Current ... _html#ixzz2A7obYj7W (Oct.2012 - FY2013)

 - This acquisition (of GW Plastic) would allow the group to fast-track its manufacturing division expansion plans. Scientex said the deal would expand its capacity to produce 154,000 tonnes of industrial stretch film and 28,000 tonnes of blown film. "Given plans already put in motion, the total annual stretch film capacity is expected to hit the 194,000 tonne mark by 2014," it said, adding the acquisition was expected to be completed by end-January 2013.
http://www.thestar.com.my/Story/?file=%2F2012%2F12%2F19%2Fbusiness%2F20121219183938&sec=business (Dec.2012 - FY2013)

 - We are positive on the group’s manufacturing segment going forward especially with the acquisition of GW Plastic. The acquisition would strengthen its position as the largest stretch film producer in Asia with a capacity of 194kMT/year next year from the current capacity of 120kMT/year. Of this amount (194kMT/year), 44kMT/year would come from GW Plastic, a 29% boost in stretch film capacity. 

 - Additionally, GW Plastic has 28kMT/year of capacity in plastic blown film, mainly servicing the F&B sector which Scientex lacks presence. While we are positive on its growth, we are also positive on the cost saving benefits following the synergies between both companies. Barring any delays, the group is expecting the acquisition to complete by mid January next year. 

 (TA Securities Dec.2012 - FY2013)

 - Despite maintaining a production capacity of 28kMT/year, the group is the largest bread packaging manufacturer in Asia and Australasia. 
(theedgemalaysia.com January 2013 -FY2013) 
- GW Plastic has been in the business of manufacturing blown film and cast film packaging for almost 40 years. Its products are used in a wide array of industries including food & beverage, household products, toiletries, E&E, agricultural, petrochemical and medical to name a few. It is one of the largest player in Malaysia in both these segments. Its export market alone contributed an estimated 60% of its sales to countries like Japan, Australia, New Zealand, Singapore, South Korea to name a few. 

- Upon consolidation, Scientex would further strengthen its position as the largest stretch film producer in Asia, with an estimated 33% market share. The other remaining players are much smaller and highly fragmented. 

 - Presently, Scientex’s stretch film (拉伸膜) capacity stands at 120kMT/year. With two additional lines expected to come in this year (tentatively May 2013 and September 2013), production capacity is expected to grow organically by 25% to 150kMT/year by end of 2013. Meanwhile, GW Plastic who currently has 34kMT/year of cast film (similar to stretch film) capacity is looking to increase capacity by another 10kMT/year in 2HCY13. Hence on a combined basis, this would translate to a total stretch film (cast film) capacity of 194kMT/year by the end of 2013.

 - In CY11, GW Plastic blown film segment made up 63% of the group’s sales. This is mainly because of the higher production capacity, utilization rate and pricing for blown films (吹膜) compared to cast films. Despite maintaining a production capacity of 28kMT/year, the group is the largest bread packaging manufacturer in Asia and Australasia. The acquisition would enable Scientex to tap into the F&B industry, where it lacks presence while hedging against economic down cycle experienced in the industrial sector.

 (TA Securities Jan.2013 - FY2013)
- 2012年全球經濟風雨飄搖中，該公司繼續內部與併購增長兩大途徑，內部增長是投入2千萬令吉提高PP打包帶產能，年產能由1萬6千200公噸增至2萬4千公噸，拉伸膜產能由10萬公噸增至12萬公噸。投入5千萬令吉擴大拉伸膜產能和收購兩條生產線，預料可於2013年中完成。
- “我們尤其看好飲食包裝業，這在經濟低迷時更顯韌力；根據Smithers Pira研究預測，此業到了2016年具有713億美元（2千161億令吉）龐大契機，2011年還是583億美元的市場。其中亞洲預計在此業以雙位數增長，意味森德綜合參與的飲食包裝契機無限。＂
http://biz.sinchew.com.my/node/71411 (Mar.2013 - FY2013)

 - Going forward, TA Securities are expecting to see significant contribution from GW Plastic as it earnings are consolidated for the full second half of FY13. Additionally, the new capacities amounting to 40kMt/year (10kMt/year from GW Plastic) which are expected to commence in stages beginning May this year coupled with the existing production lines are expected to boost overall production by 9.9%/19.3%/7.3% for CY13/CY14/CY15 respectively. Bulk of the production are expected to kick in in FY14. Note that, we have assumed a low initial utilization rate for all three plants in order to remain prudent. 

 (TA Securities Mar.2013 - FY2013)

 - Scientex Bhd has earmarked RM50 million to grow its output of packaging material for consumer products by 50%. The expansion will be undertaken via wholly-owned subsidiary Great Wall Plastic Industries Bhd (GWPI). In a statement to the exchange, Scientex said it plans to expand its output to some 51,000 tonnes a year from 34,000 tonnes now. 
- "This capacity expansion would further underscore the group’s leading position as a world class producer of consumer packaging products and entrench GWPI firmly on the world map for consumer packaging, serving reputable clientele of local and international players in the food and beverage and fast moving consumer goods sectors.
- Scientex said the RM50 million allocation will finance the acquisition of machinery besides expenses for installation and ancillary equipment. Scientex said it will undertake the expansion at its plant in Rawang, Selangor.
http://my.news.yahoo.com/scientex-spends-rm50m-expand-capacity-061505858.html# (June.2013 - FY2013)

 - Scientex managing director Lim Peng Jin said in a separate statement that its manufacturing business had gained from existing and new operations which had enhanced the quantum and quality of earnings.
- “The new segment of consumer packaging is already the second-largest contributor to manufacturing revenue - constituting 12% of total manufacturing top line in the nine-month period.
- "This favourable product mix is certainly the right track for the group to enhance the overall margins and imbue more
resilience into our manufacturing business.” Lim said.
http://sg.finance.yahoo.com/news/scientex-3q-profit-rises-50-054506752.html (June.2013 - FY2013)

 - 森德综合（SCIENTX，4731，主板工业股）计划在2014財政年投入5000万令吉资本开销，以便將消费品包装业务的產能提升50%，即从目前的每年3万4000公吨，提升至每年5万1000公吨。自今年1月完成收购长城塑胶工业（GWPLAST，5182，主板工业股）业务后，森德综合的製造业务扩展至消费品包装，以服务国內外著名饮食（F&B）及快速消费品（FMCG）业者。新收购的消费品包装业务已经崛起为森德综合製造业务营业额的第二大贡献来源，占该业务2013財政年首9个月营业额的12%比重。
- 森德综合董事经理林炳仁在该公司发出的文告中指出，扩充消费品包装业务的產能，將舒缓该公司正在面临的营运瓶颈，同时也允许该公司在未来服务区域更大的客户群。
- 「我们正在进行一项总值5000万令吉的扩充计划，这包括了收购与安装机器与辅助器材的成本，以及提升位于雪州万挠的现有厂房设施。」
- 配合此项產能扩充计划，该公司已经与德国的Windmoller & Holscher公司签署合约，向后者收购5部吹膜（blown film）机器，將此类机器的总数增至17部，而產能从每年的3万4000公吨，提升至5万1000公吨。
http://www.orientaldaily.com.my/index.php?option=com_k2&view=item&id=62087:5000&Itemid=198 (June.2013 - FY2013)

 - Separately, the group announced that it will invest RM50mn to expand the blown film capacity (5 new lines), which will raise the total capacity of this product to 51kMT/year. The investment will be funded via internally generated funds and/ or bank borrowings.

 - We are not surprised by this endeavor, since the group’s blown film business, which was acquired from GW Plastic was already running at > 80% utilisation rate. Our view was affirmed by management during the Analysts’ Briefing yesterday. According to management, the blown film business are already unable to meet growing demand. This was reflected in delay in deliveries to its customers. Blown films which are used for packaging consumer goods are predominantly exported to countries like Thailand, Indonesia, Europe, Denmark to name a few. This additional capacity would not only help to cater for this pent up demand but also entrenched its position as the largest blown film manufacturer in South East Asia. 

 - Note that the factory in Rawang is the largest manufacturer of bread packaging in Asia and Australasia. Blown film packaging, other than used to manufacture bread packaging, are also used to manufacture packaging materials used in the pharmaceutical, toiletries and E&E industries.

   ( TA Securities June.2013 - FY2013)
- Manufacturing - Demand remains good with capacity utilisation at 85%. Stretch film capacity of 154,000 mt p.a. is expected to reach 194mt p.a. by second half of 2013. Strapping capacity of 24mt p.a. is fully occupied with little room to spare at 85%. 
- Scientex announced a new investment into increasing blown film capacity by 50% to 51mt p.a. from the current 34mt p.a. Investment needed would amount to RM50m for 5 new machines and factory upgrades to accommodate the new machines. Installing would be from Jan 2014 till mid-2014 and full running can be expected by end-2014. Revenue boost from the venture is expected to reach RM120m p.a. on full operations. Reasons for the investment were to relieve current bottleneck and to plan for future demand. 

  ( Jupiter July.2013 - FY2013)

 - In terms of revenue, stretch film contributed RM147.8 million in the third quarter ended April 30, or 43% of the group’s total revenue.    
- Scientex has also announced a RM50 million expansion of its consumer packaging arm which contributed RM59.7 million or 17% of revenue in the third quarter. Under this segment, the group is the largest supplier of bread packaging in Asia.
- The first of the group’s five new blown film extrusion machines will arrive next month, says Lim. This should help ease the bottleneck at its consumer packaging division. In total, two small blowers and five large ones will be delivered by July next year, effectively increasing annual capacity by 50% to 51,000 tonnes.


http://www.theedgemalaysia.com/highlights/253607-highlight-scientex-continues-aggressive-expansion.html (Sept.2013 - FY2014)

  ( TA Securities Sept.2013 - FY2014)

- 森德的另一项核心业务为包装製造业务，该公司將在今年(2014)杪將完成总值5500万令吉的拉伸膜產能扩充计划。届时，森德的拉伸膜年產量將增加26%，从每年的15万4000公吨，提高至每年的19万4000公吨，让它崛起为全球前3大拉伸膜生產商。
http://www.orientaldaily.com.my/index.php?option=com_k2&view=item&id=76384:2850&Itemid=198 (Sept.2013 - FY2014)

 - Better earnings prospects are expected on the back of new capacities and expansion plans. By July 2014, Scientex would have annual capacities of 194k MT (+40k MT via 3 new production lines) for the stretch film segment and 51k MT for the blown film segment (+17k MT via 5 new production lines).
- This would enable the Group to establish a foothold in the relatively untapped thin-film market (stretch film), at the same time alleviating bottlenecks blown film capacity which would open up opportunities to utilise the excess capacities in its downstream printing and lamination segments which entails better margins.
http://klse.i3investor.com/blogs/kenangaresearch/40840.jsp (Nov.2013 - FY2014)

 - For its industrial packaging segment(stretch film) , 95 per cent of its products are exported while in the consumer goods (blown film) category, 40 per cent of its products are exported to more than 60 countries.
- Scientex employs 2,000 workers at nine factories and they churn out almost 200,000 tonnes of products each year. 
http://www.btimes.com.my/Current_News/BTIMES/articles/SCTEX/Article/#ixzz2lcRRgBT2 (Nov.2013 - FY2014)
- Better earnings prospects are expected on the back of new capacities and expansion plans. By July 2014, Scientex would have annual capacities of 194k MT (+40k MT via 3 new production lines) for the stretch film segment and 51k MT for the blown film segment (+17k MT via 5 new production lines). This would enable the Group to establish a foothold in the relatively untapped thin-film market (stretch film), and at the same time alleviating bottlenecks in the blown film capacity which would open up opportunities to utilise the excess capacities in its downstream printing and lamination segments, which entails better margins. 
  ( Kenanga Dec.2013 - FY2014)

 Manufacturing - EVA sheets for solar cells
Scientex recently entered into a 50:50 joint venture (JV) with MCTI (a wholly-owned subsidiary of Mitsui Chemicals Inc. of Japan) to manufacture and distribute encapsulating sheets for solar cells. MCTI is one of the top three producers of ethylene-vinyl acetate (EVA) encapsulating materials for solar films in the world, producing EVA sheets for solar cells at its existing factory in Nagoya.
The JV company, MCTI Scientex Solar Sdn Bhd, plans to build a state- of-the-art manufacturing plant for EVA sheets for solar cells in Bukit Rambai, Malacca. Commercial production is expected to begin in Aug 2012 with an initial production capacity of 10,000 MT per annum. The JV will have a paid-up capital of RM45m and Scientex plans to finance its investment of RM22.5m in the JV via internally-generated funds. 

The JV represents a strategic opportunity for Scientex to participate in the exponential growth in global demand for renewable energy, specifically solar films. MCTI’s current plant in Nagoya, with a capacity of 40,000 MT per annum, is only sufficient to meet the demand from Japan and China. The Malacca plant is expected to cater for demand from Malaysia, Singapore and Europe and will expand MCTI’s global market share to 30% in 2013 from 20% currently. 
(Maybank research Aug.2011 - FY2012)

 - Meanwhile, we are not expecting any contribution to come from its JV with Mitsui Chemicals as the group is only looking to breakeven this year. 
 (TA Securities Mar.2013 - FY2013)

 Growth/Strategy

 - 該公司董事經理表示：“我們對士姑來產業計劃取得的成功而感到開心，這將成為我們打造其他高檔產業的發展模式。”他說，未來森德綜合將專注在兩大業務，即工業包裝製造及產業發展。
http://biz.sinchew.com.my/node/45019 (Mar.2011 - FY2011)

- 配合进军太阳能领域，森德综合（Scientx，4731，主板工业产品股）投资2250万令吉与三井化学东乜口株式会社（Mitsui Chemicals Tohchello Inc，简称MCTI）成立联营公司，以制造和分销太阳能电池用乙烯醋酸乙烯酯（EVA）薄膜(ethylene vinyl acetate encapsulating sheets for solar cells) 
。森德综合和MCTI今日签署一项联营协议，以在本月底正式成立各别持股50%的联营公司——MCTI森德（MCTI Scientex）私人有限公司。MCTI森德的发行与缴足资本为4500万令吉，包含4500万股，每股面值1令吉；森德综合是以内部资金来融资上述2250万令吉投资额。
- 联营公司的主要业务是生产和分销用于太阳能电池的EVA薄膜，或称为SOLAR EVA。
- MCTI森德将在马六甲武吉南眉工业区内、占地2万3907平方米的土地上设厂。
- 森德综合董事经理林炳仁今日代表公司签署上述协议后说：“厂房预计在今年6月动工，并于明年中正式启用。首个阶段内，这厂房年产量1万吨。”随着厂房将在2012年中启用，他相信这联营会在2013财年开始为森德综合带来正面的贡献
- 三井化学株式会社（Mitsui Chemicals Inc）执行员神尾泰宏则表示，联营和成立MCTI森德，是该公司扩展太阳能相关业务至亚洲市场的一部分。他说：“在日本，我们目前每年共生产4万吨SOLAR EVA。因此，马六甲新厂房所生产的SOLAR EVA，主要在大马和新加坡销售。”“我们也计划将产品，出口至欧洲市场。”
- 据林炳仁，2009年间，全球的太阳能能源使用量为7千兆瓦（GW），2010年则倍增至大约15千兆瓦，今年预计会继续增长。他说：“太阳能使用量增加将导致EVA薄片短缺，因此这市场具备良好的增长潜能，我们预计它每年可增长20%。”
http://www.nanyang.com/node/342205 (Mar.2011 - FY2011)

 在2大業務--拉伸膜（stretch film）和產業發展穩定成長、以及進軍太陽能業務的帶動下，森德董事經理林炳仁希望該公司的淨利每年能夠成長31%。
http://www2.orientaldaily.com.my … dBJ03Aq5IF7251G9fw3 (May.2011 - FY2011)

 - 在与森德综合（Scientx，4731，主板工业产品股）管理层见面后探得：

（1）英达岛工厂增加两条拉伸膜生产线，预期提高产能22%，将在明年投产；

（2）跟三井化学东乜口株式会社联营制造和分销太阳能电池的EVA薄膜，预期8月运作；

（3）分布在柔佛和马六甲的未完成房地产发展总值18亿。

 - 由于两条新生产线仅会在明年开始运作，因此，我们预期带给森德综合的贡献只会在2014财年才发酵（财年截至在7月）。尽管加上9条现有生产线，已使英达岛厂房产能接近极限，但该集团已买下邻近土地，所以我们(TA Securities)不认为此业务发展会就此放缓。
http://www.nanyang.com/node/457457?tid=709 (June.2012 - FY2012)
- Growth impetus for the packaging division will come from the group’s continued capacity expansion to meet global demand. Its wholly-owned subsidiary, Scientex Packaging Film (SPF), raised its annual production capacity by 20% to 120,000 MT in July 2011, thus becoming the fifth largest stretch film producer in the world. Meanwhile, its 65% subsidiary, Pan Pacific Straptex, plans to raise its production capacity by 50% to 24,000 MT by end-2011, making it one of the world’s largest producers of PP strapping bands. The group also added 2 lines to increase raffia capacity to 3,600 MT per annum. To facilitate the continuous expansion of its packaging film segment, SPF recently entered into a sales & purchase agreement to acquire 12.5 acres of land (opposite its existing factory) in Pulau Indah for RM12m. 

The group’s capacity expansion plans will drive earnings contribution from the packaging segment as margins improve from greater economies of scale and falling resin prices. Its diverse range of packaging solutions for numerous industries (e.g. food and beverage, electrical and electronics, pharmaceuticals and petrochemical) also helps mitigate cyclical business risks. Meanwhile, global demand for stretch film is projected to grow by 32% from 2009-14 according to studies done by AMI Consulting (see overleaf). 

For the 9-months to April 2011, all of its 4 ongoing property development projects in Pasir Gudang, Kulai, Skudai and Malacca continued to book in higher sales. Its recently launched project - Taman Mutiara Mas, an upmarket development in Skudai recorded strong uptake due to rising demand for properties in the vicinity of the Iskandar region in Johor. The 145-acre mixed development project of high-end residential and commercial properties is now the second largest revenue contributor to the group’s property development segment, contributing RM46.3m or 29% of segmental sales of RM159m.


(Maybank research Aug.2011 - FY2012)

 - 森德綜合發佈文告指出，將透過內部融資及銀行貸款籌集所需資金，以2億8300萬令吉併購長城塑膠，整項計劃將可在明年(2013)首季完成。文告指出，兩家公司合併后將成為全球最大的塑膠包裝生產公司之一，市值高達10億令吉，產能可從現有12萬公噸提高至15萬4000公噸，同時有助進軍全球飲食業。
- 聯昌證券研究分析師在報告中指出，塑膠業許久沒有併購案，兩家塑膠公司合併后，可開拓國內此領域的經濟規模，相信將刺激市場投資者購興。“目前在馬股上市塑膠公司以小型股居多，業內一旦有任何併購活動，將擴大現有經濟規模，並且可開拓更多提供加值服務及產品的機會。”
- 該公司董事經理林炳仁指出，公司將繼續探討兩家公司所能達成的協議，在營運採購等各方面節省更多成本。
- 長城塑膠則以生產吹制薄膜為主，主要供貨給工業及商業包裝。
http://www.chinapress.com.my/node/358486 (Oct.2012 - FY2013)

 - Leading industrial packaging manufacturer and property developer Scientex Bhd is buying up the core businesses of GW Plastics Holdings Bhd for RM283.2 million in cash in a deal that will create one of the world’s largest industrial plastic packaging players. The buy, which is being funded by a combination of internally generated funds and bank borrowings, will see Scientex’s wholly-owned subsidiary Scientex Packaging Film Sdn Bhd (SPF) acquire Great Wall Plastic Industries Bhd and GW Packaging Sdn Bhd from GW Plastics. 
- The acquisitions, which are slated for completion by the first quarter of 2013, will enlarge Scientex’s industrial cast film production capacity to 154,000 metric tonnes (MT) from 120,000 MT. This take-over will also allow the Group to gain entry into the rapidly expanding global food and beverage (F&B) market segment via GW Plastics’ blown film, and downstream printing and lamination facilities. 
http://www.btimes.com.my/Current ... _html#ixzz28Eagv28b (Oct.2012 - FY2013)
- The similar business nature of both companies would bode well for Scientex especially in terms of operating synergy. In addition to expanding its market share in the plastic packaging business, the group would be able to benefit from GWPB’s 
i) local (40.2%) and foreign (59.8%) customers
ii) its supplier base and 
iii)expansion into new market segment such as food and beverage where Scientex lacks presence.  
Furthermore GWPB is a well managed and established company specializing in flexible plastic packaging (FPP), a rather niche business with only few big players. It is also understood that GWPB had expanded its capacity in blown and cast film segment sometime last year. Its historical 4 year net profit CAGR (FY07- FY11) grew by a healthy 37.9%. 
(TA Securities Oct.2012 - FY2013)

 - SB has proposed to acquire two operating companies from GW Plastics for a total cash consideration of RM283.2m. The company will raise the fund through internal generated funds (RM83.2m) and borrowings (RM200.0m). The corporate exercise is pending the approval of several parties and authorities. Should the deal go through, the company expects it to be completed within six months. 

 The revenue of SB has been pretty stable on the back of higher contribution from its manufacturing division vs. property (ratio of 72:28) as the former has been growing organically with a 5-year CAGR of 5.1%. However, the property segment contributes the most (56:44) to earnings as its margin is much higher. Upon completion of the exercise, the net profit composition will likely be at 50:50.  

 SB will become the new local market leader of both blown and cast films (estimated at around a 60% market share for both products) based on capacity after the acquisition as compared against its peers. We believe this will allow SB to enhance its products range and expand its clienteles to sustain competitive advantages in the industry. SB should be able to achieve better operating efficiency or even potentially save cost for its major clients to compete with the world-class players. 
(Kenanga Oct.2012 - FY2012)
SCB is acquiring two operating companies from GW Plastics for MYR283.2m cash (~MYR1.20/GWP share). GWP will have an annual production capacity of 44,000MT of cast stretch film and 28,000MT of blown film with downstream printing and lamination facilities.
SCB will invest MYR50m to add another two lines to its existing nine lines, boosting stretch film capacity by 25% to 150,000MT in 3Q 2013. The combined entity will be one of the world’s largest industrial plastic packaging players with significant exposure to the fast expanding F&B segment, thus boosting EBITDA margins above the current 9% from economies of scale and other synergies.
SCB has built a highly successful property business with healthy gross margins of more than 40% due to its cost efficiency. The group has 1,700 acres of land bank for future development with current GDV of MYR451m and pipeline GDV of MYR1.7b lasting until 2020. Current unbilled sales of MYR171m and the launching of commercial properties in Skudai will boost property contribution from ~56% in FY12 to more than 60% in FY13. It recently purchased another 244 acres of land in Senai, Johor for MYR66m. 

(Maybank Oct.2012 - FY2013)  

- Scientex Berhad held a closed door analyst briefing which was attended by 5 analysts. The briefing was primarily focused on the merits of the recent acquisition of GW Plastic Berhad by the group.

1)Synergy to drive cost savings 

Following the acquisition, the group will continue to strengthen its position as the largest stretch film producer in Asia, with an estimated 33% market share. The scalability of the raw materials purchased would inevitably grant Scientex purchasing power, thus reducing its per unit raw material procurement cost. Management expects an average cost saving of USD0.03/kg of raw material. This is estimated to save the group some RM10mn in FY14. Additionally, the group expects technological synergy as the acquisition improve, its operational efficiencies resulting in some cost saving for the group. This is expected to amount to RM 3.5mn in FY14.

2)Tapping into new business territories
 
Presently, the group manufactures stretch films catering mainly for the industrial sector. However, following the acquisition, the group would be able to tap into new territories such as the F&B sector especially in the bread packaging, whereby GW Plastic is the largest bread packaging manufacturer in Asia and Australasia. Other smaller segments include pharmaceutical, toiletries, E&E, and agricultural. The diversity would bode well for the group as it would provide further reach and opportunities for growth especially in fast moving consumer goods product while hedging against economic down cycles. With that, the group is expected to re-align its strategic division to industrial packaging and F&B packaging. 

3)Production boost 
As mentioned previously, the group will be increasing its combined production capacity for its cast film from 154kMT/yr to 194kMT/yr, a 26% jump. Of this total amount, GW plastic alone is expected to contribute by some 29% growth from 34kMT/yr to 44kMT/yr by next year. While the 194kMT/yr production capacity would inevitably strengthen its position as the largest stretch film producer in Asia, both companies have room for further expansion in their respective factories in Pulau Indah and Rawang.

 4)Margin enhancement 

Production capacity would jump 52% (for both its cast film and blown film) following the acquisition. Coupled with cost saving synergies, we expect its margin for the manufacturing sector to improve. Presently, its manufacturing segment garners lower margin of just a single digit at its PBT level, while its property segment is looking at a significantly higher double digit PBT margin (usual for the property industry). This is also due to the nature of the plastic packaging business, which is said to be volume driven. The consolidation by the
two biggest plastic packaging players will reduce competition while enjoying better bargaining power with customers. Management expects to see a USD0.04 increase in selling price after the consolidation. With that we are expecting margin for the manufacturing sector to strengthen further. Thus, balancing the group’s bottom line contribution from both its segments to 50:50 by FY14 (currently the mix of property to manufacturing is 60:40).

 ( TA Securities Oct.2012 - FY2013)

- The acquisition of both GW Plastic and GW Packaging will bring in an estimated combined revenue of RM1.25 billion for Scientex Bhd, a significant increase from the RM881 million it posted in FY12. Scientex Berhad managing director Lim Peng Jin said the deal would boost Scientex’s production volume up by 20% and move it up to rank third in the world amongst plastic manufacturers.
http://sg.finance.yahoo.com/news/scientex-eyes-combined-revenue-rm1-090005713.html# (Dec.2012 - FY2013)

 - It recorded sales of RM200 million for FY12, with a balance land bank of 1,000 acres at an estimated gross development value of RM3.3 billion. Lim says the land should last for the next 8-10 years.
- Currently Scientex has set aside about RM50 million for its own factory expansion and to accommodate the two new lines it will add – to be complete by the end of 2013.
It has also bought a plot of land across from its factory in Pulau Indah for RM 12 million, slotted for further expansion plans.
http://sg.finance.yahoo.com/news/scientex-eyes-combined-revenue-rm1-090005713.html# (Dec.2012 - FY2013)

 - 他也披露，长城塑胶工业是一家营运良好的企业，因此，运作方面不会有太大更动，並將保留所有员工。 另一方面，一名接近该收购案的知情人士披露，长城塑胶工业首席执行员林国文將在完成收购案后，持续在森德有限公司旗下执掌长城塑胶工业的原有业务。
- 森德有限公司是在今年10月宣布，以2亿8320令吉收购长城塑胶工业旗下两间子公司，即GW包装私人有限公司和长城塑料工业有限公司。前者的业务为生產拉伸膜；后者则主要生產吹膜（blown film）產品，作为食品、电子、製药等產品的包装用途。
- 在完成收购后，森德有限公司的拉伸膜年產能將立即升增至15万4000公吨。林炳仁披露，目前该公司和GW包装皆分別正在扩充2条和1条新生產线，该公司料可在明年杪坐拥19万4000公吨的年產能，从全球第五大拉伸膜生產商跃升第三。双方的整合料將能降低成本，並加强与供应商和客户的议价能力。
- 至於该公司的產业业务，郑秀仙披露，虽然吉隆坡產业市场今年显得较为淡静，但其主要位於南马的產业仍因邻近依斯干达特区，而持续交出亮丽表现。该公司目前仍拥有约100英亩的地库，发展总值（GDV）料达30亿令吉，足以进行未来8至10年的发展计划。
- 此外，森德有限公司去年5月与三井化学集团合作，在马六甲设立生產太阳能电池封装片的工厂。
林炳仁披露，该工厂已在11月试跑，目前仍未確定能否在现財政年提供业绩贡献，但他对此长期投资的前景深具信心。http://www.orientaldaily.com.my/index.php?option=com_k2&view=item&id=35735:&Itemid=198 (Dec.2012 - FY2013)

 - 森德综合（Scientx，4731，主板工业产品股）收购长城塑胶（GWPlast，5182，主板工业产品股）子公司长城塑胶工业公司（GW Plastic）和长城包装私人有限公司（GW Packaging）后，预计会带来12亿5000万令吉的营业额。森德综合2012财年的营业额，达8亿8100万令吉。该公司董事经理林炳仁今天在股东特别大会获得股东核准收购计划后表示，交易完成后，森德综合的产量将会提升20%，公司将跃升为世界第3大塑料生产商。
- 收购长城包装，也为森德综合提供进军餐饮业的机会。长城包装为餐饮业提供塑料包装。林炳仁表示，公司其中一个化学部门专为食品包装业提供原料，因此一直有意进军餐饮业。“这些年我们专注在拉伸膜（stretch film）业务，这个软塑包装业务与我们使用类似的原料，在科技和机器方面也将享有协同效益。”
- 此外，森德综合在巴西古当、古来、士姑来和马六甲有4项综合产业发展计划。产业项目在2012财年取得2亿令吉的销售额，另外也有1000英亩的地库，发展总值约33亿令吉。
- 目前，该公司拨出5000万令吉，以扩展厂房，以容纳两条新的生产线，预计会在2013年年杪完成(料可進一步提高產能至19萬4千公噸)。森德综合也以1200万令吉，在英达岛厂房的对面收购土地，作为以后的扩展用途。
http://www.nanyang.com/node/499193?tid=462 (Dec.2012 - FY2013)
- “The acquisition of GW was concluded in January and the businesses were consolidated in the first two months. By April, however, we realised that we needed to expand because we could not keep up with orders [for consumer packaging] and were falling behind delivery schedules,” says Lim. The reason for the expansion is because the current capacity (blown film) is almost fully utilised, and the new capacity will be easily taken up, he says. 
- Beyond this round of expansion, there are also plans to expand the capacity at its consumer packaging division by another 50% towards
the end of next year, says Lim. The group already has 28 acres in Rawang near the existing factory that can be used to accommodate the expansion, he notes. 
- 他称，今年杪製造业务將完成总值5500万令吉的拉伸膜產能扩充计划。届时，拉伸膜的年產量將增加26%，从每年的15万4000公吨，提高至每年的19万4000公吨，让森德崛起为全球前3大拉伸膜生產商。另外，森德也计划在2014財政年展开新的產业发展计划，这些新发展计划的毛发展总值接近6亿令吉。森德目前產业计划的毛发展总值为8亿3600万令吉，未入帐销售则是3亿零780万令吉，会在未来两三年內陆续认列。

- 今年1月才通过併购行动进军消费者包装领域的森德公司（SCIENTX，4731，主板工业股）再次出手，週一宣布以4000万令吉，收购东南亚磁砖（SEACERA，7073，主板工业股）旗下的Seacera Polyfilms私人有限公司。 
- Seacera Polyfilms是国內双向拉伸聚丙烯薄膜（BOPP-biaxially oriented polypropylene ）的主要生產商之一，用作食品和液体软包装领域的重要保护性外层材料，年產能达500公吨。目前，该公司有七成的產品供应国內市场，剩余3成则做出口。
- 在2012財政年（12月31日结账），Seacera Polyfilms的净利达46万7772令吉，资產总值1928万令吉，意味著上述收购价对账面价值比率（P/BV）为2.07倍。但分析员指出，Seacera Polyfilms的净利之低，主要是因为该公司拖欠东南亚磁砖一笔管理费用。分析员进一步指出，Seacera Polyfilms实际上取得280万令吉净利，这也意味著，按4000万令吉价格计算，森德是以14.3倍本益比来完成这项收购，价格对帐面价值（P/BV）是2.1倍。
- 森德表示，收购Seacera Polyfilms可进一步提升其在消费者包装领域的价值链。该公司在今年1月完成收购长城塑胶工业（GWPLAST，5182，主板工业股）旗下业务，不仅晋身全球三大拉伸膜製造商之一，同时也是首次涉足食品包装领域。因此，该公司视上述收购案为进军消费者包装领域的后续策略性行动。
- 森德將通过內部资金和银行贷款进行以上收购，並表明这宗料將在2014財政年（7月31日结账）完成的收购案，不会对其负债率带来任何显著影响。

 - We also reckon that Scientex should not have any issues with funding as its its net gearing ratio would only increase from 0.26x to 0.35x, assuming the RM40.0m acquisition is funded entirely by borrowings. This would still be within management's comfortable levels of 0.25-0.5x. (Acquisition of Seacera)

- Lim said the company wants to grow its property and packaging businesses at an equal contribution to spread the risk, due to the property sector's cyclical nature.

- 森德綜合（SCIENTX，4731，主板工業產品組）這個財政年斥資1億2千萬令吉，用於擴展旗下工業包裝業務與產業發展，並專注於南馬推出14至15項產業發展計劃。
- 董事經理林炳仁披露，有關資本開銷計約4千萬令吉收購Seacera Polyfilms有限公司、5千萬令吉用於長城塑膠（GWPLAST，5182，主板工業產品組）產能擴展，另3千萬令吉用於購買古來48.4英畝地段。

- 他披露，公司目前的負債比約為0.38倍，公司控制負債比在0.2至0.5倍水平內，除非很具吸引力的併購才會再融資。 “目前還在搜尋併購，不過沒有具體結果，專注於完成雙向拉伸膜（BOPP）製造商Seacera Polyfilms有限公司。”
- 該公司目前是工業包裝製造業領導者，為亞洲最大、全球最三大的拉伸膜製造商；他說，預料公司在擴大產能後，年產能由15萬4千公噸增至19萬4千公噸，預料一至兩年會全面使用所有產能，放眼5年內業務規模翻倍成長。

- The company has allocated RM50mil to increase and expand the GW Plastics units that were using inefficient machines. “We expect the Seacera deal to be completed in two to three months, and this would complete our range of consumer packaging that we currently offer to customers,” he said after Scientex AGM and EGM.
- With the expansion, he said the company would have 16 manufacturing lines capable of producing 194,000 tonnes of stretch films per annum from 154,000 tonnes currently.This would make Scientex the third-largest stretch film producer globally, added Lim.

 - Scientex has also allocated RM30mil for two parcels of freehold land in Kulai, Johor, that it planned to buy from Pine Plantation Sdn Bhd for its property development division.

 - The expansion plans have brought the company’s gearing ratio up to 0.38 times, which, according to Lim, is still comfortable. “We are quite careful with our balance sheet management; 0.2 to 0.5 times is still a reasonable level. We don’t want to have a high gearing situation unless we have a very attractive opportunity to expand,” he said.

 - He said the company had launched seven projects for this financial year and still had another seven projects in the pipeline that would be launched anytime, depending on market sentiments. “We have realised about RM2bil (in sales) and still have another RM5bil. With the recent cooling measures, the company is focusing on affordable housing projects with prices ranging from RM200,000 to RM500,000,” he said. He said Scientex still had 400ha landbank to be developed.
http://www.thestar.com.my/Business/Business-News/2013/12/18/Scientex-sees-busy-2014-It-allocates-RM120mil-to-expand-ops-plans-14-property-projects.aspx/ (Dec.2013 - FY2014)

 - 森德将在2014财年，拨出近1亿2000万令吉为资本开销，包括投资5000万令吉扩展刚完成收购的长城塑胶工业。 其中2800万令吉是用于收购柔佛古来两块永久地段，以及4000万令吉是收购Seacera Polyfilms公司的资金。
- 目前，森德冀望包装和产业业务，对净利贡献的比重平均。同时，公司也将继续探讨更多扩充两个核心业务的机会。不过，林炳仁强调，公司注重扩充之余，也会避免负债率超过0.5倍。截至2013年10月31日，该公司的负债率为0.38倍。
- 针对森德的产业业务，政府早前公布多项打房措施，所以，森德会把焦点转向发展可负担房屋，并专注在南马地区。林炳仁透露，森德2014财年会推出14个计划，但最终推介计划数量，还是以市场情绪及认购率为准。
- 另外，他也提到公司有意改善股票流动量，但目前还未有实际计划。森德目前在市面上自由流动的股票，只有约35%。
http://www.nanyang.com/node/586773 (Dec.2013 - FY2014)

 - 在经历了1997年亚洲金融危机，以及2008年全球金融危机后，该集团采用‘选择和集中’方式作为业务增长的策略。该策略并不是一夜之间想出来。在20世纪90年代，当经济环境较佳时，该集团拥有大约80家公司，业务范围涉及生产布袋、纸箱，纺织品、拉伸膜，以及产业发展。由于经营环境是乐观，因此在90年代中期时，所有业务皆获利。他称：“当亚洲金融危机在1997年冲击我们时，我们看到了问题所在，有些业务获利，而其他则录得亏损。”当他在哈佛大学就读时，他明白道竞争对于业务的重要性。森德工业从2000年至2005年间进行转型，并将80家不同业务的子公司整合成为30家。“我们选择业务是希望能够增长，至于那些亏损的业务则需要淘汰。”林氏指出：“为此，我们已选择了包装和产业作为我们的核心业务。”然后，它脱售了其他业务，并将所获取的资金，全部注入上述2项业务中。
他表示，目前，集团几乎分配相同的资源予该两项业务。- 集团董事经理林炳仁希望公司的规模在未来5年内能加倍增长。他在接受传媒采访时说：“我们有一个明确的方向和良好的策略来实现这个目标。”在截至2013年7月31日止财政年，集团录得12亿令吉的营业额。
- 林氏对上述评论说：“我们没有计划分拆该两大核心业务。”他称：“规模对我们很重要。随着数十亿令吉的规模，我们有更多的机会来发展业务。”
- 该集团的计划，是在涉及的业务中找出有增长空间后，才作出扩充活动。
- 森德工业的制造业务架构中，有2项主要业务，分别是工业包装和消费品包装。通过较高的产量、较佳的效率和较低的成本，使到它在工业包装业务不断增长。而它计划通过提供食品保鲜的优点、印刷、切割和其他增值服务，来发展消费品包装业务。
- 制造拉伸膜在工业包装中是占取重要的位置。目前，该集团是全球第3大拉伸膜制造商，拥有16条生产线。而每年产能高达20万公吨。林氏指出，15条生产线经已投产，而最后一条则在本月投产。
- 他表示，集团将会继续创新，并利用纳米层技术生产超级薄膜。若以较少的原料投入每个托盘包装，那么该集团可以节省原料成本，从而将利润率提高20％至30％，但这取决于国家和行业而定。
http://www.kwongwah.com.my/news/2013/12/26/125.html (Dec.2013 - FY2014)
"While we continue to chart commendable performance in our manufacturing segment, we are now setting the foundation for our next growth phase via the strategic consolidation of our consumer packaging division under a single platform of Scientex Great Wall. 
"It's a natural progression to align our enlarged consumer packaging product range under Scientex Great Wall. "This will not only enable us to be a one-stop consumer packaging solution provider, but also enhance our visibility as a leading integrated consumer flexible packaging player," said Scientex managing director, Lim Peng Jin in a statement.
Great Wall Plastic produces polyethylene films while Seacera Polyfilms manufactures biaxially-oriented polypropylene films.
http://www.scientex.com.my/contents/investornews/13/upload/20140321_NST-BusinessTimes.pdf March.2014 - FY2014
森德公司雖然受到原料價格揚升影響，製造業業務賺幅降低，但市場還是看好其長期業務展望，特別是擴充賺幅較高的消費者包裝膜，以及伸延產品如更薄的薄膜厚度儀等，料可緩和賺幅縮減利空。
達證券指出，該公司5條吹塑薄膜(blown film)生產線每年產量為1萬7千公吨，預料將從今年1月至7月逐步投入操作，加上2條新的拉伸纏繞膜(stretch film)生產線，每年產量2萬5千公吨在去年10月及12月投入營運，預料將使其2014年財政年下半年盈利走高。
http://biz.sinchew.com.my/node/92070?tid=18 March.2014 - FY2014

当中，森德公司旗下製造业务在2014財政年第3季的营业额，按年成长15.2%，达到3亿1721万令吉。產业业务的营业额则走高57%，达到1亿956万令吉。去年同期，製造业与產业业务的营业额分別是2亿7527万令吉以及6983万令吉。

森德公司董事经理林炳仁表示：「集团在2013年12月杪完成扩增拉伸膜年度產能至19万4000公吨以后，我们在亚太区域的出口量也隨之增加。2014財政年第3季度营业额的增长，应验了我们的策略奏效。」

「我们的消费品包装业务也將效仿拉伸膜业务的作业方针。截至目前，吹塑薄膜生產线扩增工作还是按照原定计划在进行中，所有生產线估计都能在2014年全面投入生產。届时，年度產能將提高50%至5万1000公吨，有利於集团进军具弹性的亚太新兴市场和特定欧洲市场。

森德公司位於柔佛士乃镇新推介的產业取得空前的迴响，为第3季產业业务带来了相当大的贡献。与此同时，森德公司位於柔佛州巴西古当、古来、士古来帝雅园以及士乃的发展计划持续获得购屋者的青睞。

森德的產业臂膀自2013年11月开始在森德士乃镇推介了3期，共539个单位的的双层排屋房產计划，发展总值为1亿3180万令吉。第1和第2期（共350单位）在2013年11月与12月推介后，在数周就售罄。第3期（共189单位）在2014年1月中推介以来，认购率也超过80%。面积达250英亩(101.2公顷)的森德士乃镇是一项综合產业发展计划，发展总值估计达到13亿令吉，地点毗邻士乃国际机场以及数个工业园。

谈及集团的前景，林炳仁表示，「除了持续在製造业扩展產能和开发市场，森德公司將继续配合市场购屋者的需要，集中在发展需求稳健的可负担房產。排除一切无法预计的因素，我们对公司本財政年的业绩增长，仍旧抱持谨慎乐观的態度。」
http://chinese.cari.com.my/news/news.php?id=608116 June.2014 - FY2014

The company, with a market capitalisation of RM1.26bil, completed the expansion of its stretch film operations towards end-2013 where it increased annual production capacity from 154,000 tonnes per annum to 194,000 tonnes.
“Apart from the market penetration strategy in existing and new markets, we will continue to improve productivity and efficiency to be cost competitive,” he tells StarBizWeek. One example of this is Scientex developing a new generation of thinner film via down-gauging the film from 12 to 8 micron and a next generation 6 micron film. The current industry norm is 23 to 15 micron film. “By down-gauging, there is cost savings for the customers from using less packaging material,” Lim notes. This also translates to reducing the customers’ carbon footprint, which environmentally-conscious markets appreciate.

Ongoing expansion plans for higher margin consumer packaging films and product extensions should provide added buffer against margin contractions while expansion of the blown film lines are on track and would spur revenue growth, it says.

While the demand for stretch film in export markets continue to grow, Scientex is not neglecting the opportunities in other promising plastic packaging segments.

Its consumer packaging segment has been earmarked as a high-growth potential business, according to Lim. That is no surprise, considering its better margins than stretch film.

The group has invested some RM70mil to increase its capacity by 50% for this segment, in anticipation of higher demand in the near future. Lim says Scientex’s expansion plan for the consumer packaging segment is on track for completion this year.

Through three company acquisitions last year, Scientex has consolidated its consumer packaging business under one roof – Scientex Great Wall Sdn Bhd. The synergistic acquisitions were of GW Packaging Sdn Bhd, Great Wall Plastic Industries Bhd and Seacera Polyfilms Sdn Bhd.

“We can be the primary integrated full range products provider to our customers and have centralised raw material sourcing for better procurement benefits for suppliers.

“We foresee that the consumer film demand will continue to grow with the increase in the huge and growing population of over 600 million people in South-East Asia, rise of the middle class population as well as higher disposal income group in this region,” Lim says.

The urban population’s preference for convenience packaging, a heightened awareness of hygiene and food safety have also been contributing factors to the increased selection and volume of packaging applications the market demands.

The company follows internationally recognised stringent standards required especially on food safety in the food and beverage (F&B) industry to supply consumer packaging products to quality-centric markets in Europe, the United States, South Korea, Australia, New Zealand and Japan which in turn bring in higher margins as these are value-added products.

Another reason the consumer packaging segment beckons is its general resilience against economic downturns, particularly for the F&B and fast moving consumer goods (FMCG) sectors.

Lim points out that this dynamic product segment has had manufacturers increasingly switching from rigid packaging to flexible packaging to reap the benefits of greater flexibility and cost advantages.

Wary of the industry trends, Scientex has made strategic moves to tap the huge potential in the rapidly-expanding global F&B and FMCG sectors.

For its outlook on its manufacturing business, Lim says the company remains positive of its prospects for the rest of the current financial year, in the absence of any unforeseeable circumstances.

“We are continuing to seek new markets and new customers in Asia-Pacific emerging markets and selected European markets, while expanding our product range.”

Besides organic growth, Scientex continues to keep its eyes peeled for the next potential merger or acquisition, strategic alliance and joint venture.

As Lim sums it up: “Market size does matter in realising the vision of becoming a global market leader.”
http://www.thestar.com.my/Business/Business-News/2014/08/02/Scientex-stretches-net-profit-Demand-for-plastic-packaging-soars-amid-global-economic-recovery/?style=biz Aug.2014 - FY2014

Packaging manufacturer and property developer Scientex Bhd has inked a strategic alliance with Japan’s largest biaxially oriented polypropylene (BOPP) film manufacturer, Futamura Chemical Co., Ltd (FCC) to build a BOPP film manufacturing plant in Malaysia. In a statement Friday, Scientex said both firms would jointly grow and develop the consumer packaging markets in Japan and Southeast Asia.
It said the companies’ fist initiative under the partnership was to build a new world class BOPP film manufacturing plant incorporating the advance technology to operate at the highest production speed while adhering to stringent Japanese quality standards besides riding on the advantage of lower Southeast Asia manufacturing costs within Malaysia. 

Scientex said the strategic alliance through SGW entitled FCC to purchase up to 20% of the issued and paid-up capital of SGW within the next five years with an initial subscription of 5% of the issued and paid-up capital of SGW (Scientex Great Wall). It said FCC has the right to 30% of the production capacity of the new plant which is approximately 1,500 metric tons per month of BOPP film for sale and distribution in Japan.
“Correspondingly, SGW will assist, develop, market and sell FCC products or products developed using FCC technology to existing and new markets in the

Southeast Asia region by tapping into the extensive distribution channels of SGW,” it said. 
http://www.scientex.com.my/contents/InvestorNews/42/upload/20140808%20-%20TheEdgeOnline.pdf  Aug.2014 - FY2015
目前，该公司的BOPP产能为每年6000公吨，在新厂房(森德与日本二村化学株式会社（Futamura Chemical）携手合作，在大马打造世界级双向拉伸聚丙烯薄膜（简称BOPP）厂房。)完成后，每个月产能可另增1500公吨，这意味着森德每年的BOPP产能，将三倍增长至每年2万4000公吨。该公司同时也积极寻找新出口市场，并锁定亚太地区以及数个欧洲国家，未来销售将继续提升。
http://www.nanyang.com/node/641487?tid=704 Aug.2014 - FY2015

 森德公司計劃3年內斥資3億令吉擴充聚乙烯薄膜（PE薄膜）和雙向拉伸聚丙烯薄膜（BOPP）產能，並拓展流延聚丙烯薄膜（CPP）生產業務，放眼更大的亞太消費品包裝業務市場。森德公司將夥拍日本最大BOPP生產商二村化學株式會社（Futamura Chemical Co.），在巴生港口英達島建造世界級BOPP薄膜廠房。“一旦廠房在2016年投產，BOPP薄膜常年產能將會翻10倍，從6千公噸增至6萬公噸。”目前，該公司也積極擴充萬撓廠房的PE薄膜常年產量，以從現有的2萬4千公噸，於年底增至4萬8千公噸。
森德公司董事經理林炳仁指出：“二村化學通過注資，參與森德長城的業務發展，反映了雙方皆重視開發亞太區域消費品包裝業務的遠景。”
林炳仁也重申，森德公司將繼續尋求與全球不同領域的領導者合作，加快推動業務增長。
http://biz.sinchew.com.my/node/102520 Sept.2014 - FY2015

 另外，森德公司今天日本製鋼所（Japan Steel Works）、Reifenhauser集團及Windmoeller & Holscher簽署購買合約，分別向3家公司訂購BOPP 薄膜、CPP薄膜和吹塑薄膜機械。Reifenhauser將參與消費品包裝的生產。森德公司訂下目標2015年的生產力將達1萬2000公噸。而W&H公司將參與吹塑薄膜（Blown Films）生產。另外，Japan Steel Works負責提供生產雙向拉伸聚丙烯膜的機械。
http://www.chinapress.com.my/node/563507 Sept.2014 - FY2015

 當被問及二村化工參股森德長城的原因時，長江太雄分享說，「我們認為森德是一家值得信賴的公司，更何況該公司以往曾和一些日本公司合作，這給了我們不少信心。」
http://chinese.cari.com.my/news/news.php?id=658843 Sept.2014 - FY2015
As part of the agreement, SGW will build a new BOPP film manufacturing plant in Pulau Indah, Port Klang at an estimated capital outlay of MYR170m. The plant will have an annual production capacity of 60,000 tonnes of BOPP films upon completion by end-2016. Upon commencement of the plant, FutChem will be allocated 30% of the production capacity for sale and distribution in Japan. The remaining 70% will be marketed in Malaysia and other South-East Asian countries by Scientex. 
In addition, SGW has announced its intention to penetrate into the cast polypropylene (CPP) film, with an initial production capacity of 12,000 tonnes. This new setup will cost an estimated MYR50m and we expect full commercial production to commence by 4QCY15.

 With i) the proposed expansion of BOPP film, ii) the setting up of its CPP division, and iii) the ongoing expansion under its polyethylene (PE) film, which is set to be completed by Feb 2015, Scientex’s annual production capacity under its consumer packaging segment will increase to 120,000 tonnes come 2017 from 30,000 tonnes currently. Based on our estimates, this will bump up its segmental revenue contribution to over MYR1bn by FY18F from MYR295.1m in FY14. 
In a nutshell, its proposed expansion plans would require capital investment of over MYR240m over the next two years. We believe funding should not be an issue given: i) its relatively manageable net gearing level of 0.36x currently, ii) annual operating cash flow of over MYR200m per year, and iii) an additional MYR40m cash inflow from FutChem’s subscription of 5% stake in SGW.

 Moving onto its property segment, Scientex booked in new property sales of MYR470m in FY14 vis-à-vis total new launches of MYR590m during the year. Management guided that the majority of the new sales consists of affordable residential properties in Pasir Gudang, Senai, and Kulai in Johor. Unbilled sales amounted to MYR537.4m as of end-July. This, in our view, will likely last the company over a year, given that its FY14 recognised revenue under its property arm registered MYR398.3m. Management is looking at new launches with GDV of MYR550m per year for FY15 and FY16. Its existing landbank now stands at 896 acres with outstanding GDV of over MYR4.3bn. 
  ( RHBOSK Sept.2014 - FY2015)

Scientex managing director Lim Peng Jin said FCC’s equity participation will allow SGW to build a new local biaxially oriented polypropylene (BOPP) film manufacturing plant based on stringent Japanese standards and quality that will lower manufacturing costs. 

“SGW will buy modern BOPP film production lines for the expansion of its existing BOPP film production capacity. The proposed BOPP film plant will have an investment cost of about RM170 million.

“The construction of the new BOPP plant is expected to be completed by the second half of 2016. With the new plant, the current BOPP film annual production of 6,000 tonnes will jump to 60,000 tonnes per year,” Lim said after the agreement signing ceremony, here, yesterday.

SGW will also expand its cast polypropylene (CPP) film operations by the commisioning a new CPP plant and production lines costing RM50 million, expected to be operational by the second half of next year.The new CPP film plant is expected to generate an annual production output of 12,000 tonnes of CPP film.Both BOPP and CPP films are extensively used in the flexible packaging of food and beverages.Lim said with the exercise, the group is expected to further develop and grow its consumer packaging market share in Japan and Southeast Asia.
林炳仁对本财年业绩表现表示乐观，应可超越上财年，并会继续为股东带来更多价值。他也认为，今年全球领域前景看俏，料需求稳定。“我们会专注在亚太和日本市场，暂时不放眼中国或印度人口较多的市场。”

 Scientex Bhd expects the turnover from its consumer packaging business to quadruple to RM1bil in three years through its partnership with Japanese firm Futamura Chemical Co Ltd, as well as investments in new machinery. Managing director Lim Peng Jin said the company would focus on growing its consumer packaging business in South-East Asia and Japan. Currently, the segment rakes in about RM250mil in revenue. It will allocate RM300mil for capital investment, which will boost its total consumer packaging capacity from 30,000 tonnes (BOPP-6000 tonnes,PE-24000 tonnes) per year to 120,000 tonnes (BOPP-60000 tonnes,PE-48000 tonnes,CPP-12000 tonnes) in 2016. 

 Speaking at a press conference, Lim said: “Futamura’s (Futamura is a Japanese based company with over 60 years of experience in film and non-film packaging. It is the largest BOPP film manufacturer in Japan with a domestic market share of 30%. The group reported sales of USD667mn (RM2.2bn) in FY14. ) participation via its equity stake in SGW reflects the long-term perspective adopted by both parties to jointly grow our consumer packaging business in Asia-Pacific. We are certainly exploring further collaborations beyond base film into other aspects, such as barrier film capability and other high functional films.”

 Lim also said the RM300mil investment would consist largely of internal funds. Of the RM300mil, RM80mil would be invested in the PE film manufacturing machine, RM170mil for the BOPP production machine and RM50mil for a cast polypropylene (CPP) production machine, he added.

 CPP film, which is widely used as the sealing layer in laminated flexible packaging, is the new market SGW is entering into. 

 At the group level, Lim expects its consumer packaging arm to be a fast-growing engine, while its stretch film business will continue to grow steadily at some 10% per annum. 

 Scientex managing director Lim Peng Jin said while the demand for both industrial and consumer packaging products have remained intact, the group has also noted lower profitability, due to the adoption of a market penetration strategy to establish its presence in new markets across South East Asia. 
“We continue to take a long term view of the consumer packaging sector, and are progressing with our expansion plans, [and] in the long run, we expect these expansion efforts to enhance manufacturing efficiency and reflect favourably on our result,” he said in a separate statement today.

 森德董事经理林炳仁今天在股东大会后表示，公司正积极拓展业务，如安装新机器和建设新厂房，除了建设新的BOPP薄膜厂房，公司也在马六甲设立生产CPP薄膜的新厂房，而年产能可达1万2000公吨。
“拓展产能是为了更具竞争力，我们看好东南亚市场，并冀望日后在该区域占有一席之地。”
他认为东南亚市场的人民生活素质越来越好，加上人口不断增长，带动该区域的市场每年增长8至10%。

 森德总共拨出3亿令吉的资本开销，以支撑从2014至2016财年的拓展计划。“上财年已运用了7000万令吉的资金，还有2亿3000万令吉作为本财年及明财年拓展计划的资本开销。”

谈及最近原油价格下滑及马币贬值，林炳仁不否认上述情况的确可改善公司的盈利赚幅。“目前产品税前盈利赚幅介于5至8%，而85%制造领域的材料跟油气下游领域有关，所以，当材料成本走跌，赚幅也会提升。”至于汇率，他说，因公司75%的产品都出口至国外，所以是以美元交易，因此当美元提振，也会为公司引来正面效应。

 林炳仁表示，公司将专注发展可负担房产，明年4月将在柔佛推出“实惠房屋”（RMMJ）计划，总共有2000个单位，价钱介于8万令吉至15万令吉。

“可负担房产向来都是公司的产业核心业务，明年，我们会在柔佛及马六甲推介发展总值达6亿令吉的房屋项目，当中三分之二属于可负担房产。”尽管房产领域在未来或面临挑战，但林炳仁说，公司会因应市场波动而推出不同的房屋项目。“可负担房产向来都有需求，因中等收入家庭或新婚夫妇都会想要购买房子居住，而高档房产领域波动较大，因大多数购买的原因都是为了投资。”目前，森德尚有1000英亩土地可供应未来7至8年的发展，林炳仁不排除在南马地区收购更多的土地，但须维持不超过0.5%的负债率。
For the current quarter ended 31 January 2015 (Q2FY2015), the Group recorded revenue of RM462.9 million, an increase of 20.7% as compared to RM383.5 million recorded in the preceding year corresponding quarter. Profit before tax was RM47.3 million, an increase of 6.5% as compared to RM44.4 million in the preceding year corresponding quarter, after taking in a foreign exchange loss of approximately RM9.7 million in the current quarter under review, as a result of the weakening of Ringgit Malaysia ("RM") against United States Dollar ("USD").
Manufacturing revenue recorded was RM327.0 million, an increase of 13.3% compared to RM288.5 million in the preceding year corresponding quarter. The increase was attributed to the higher contribution from both the industrial and consumer packaging products in both the local and export markets. Profit from operations increased from RM16.0 million to RM17.4 million, in line with the higher revenue recognized.
Property revenue recorded was RM135.9 million compared to RM95.0 million in the preceding year corresponding quarter, an increase of 43.0%. The improvement in revenue is mainly due to strong progress billing contribution from Taman Scientex Senai. Meanwhile, the sales and progress billing from Taman Scientex Pasir Gudang, Taman Scientex Kulai, Taman Mutiara Mas and Taman Muzaffar Heights remain satisfactory. Profit from operations increased from RM29.4 million to RM40.3 million, an increase of 37.2%. The increase is consistent with the increase in revenue.

The Group’s consumer packaging segment continues to see tonnage sales increase month-on-month and with the new Varex II 9 layer blown film line fully commissioned in December 2014, the Group is now able to produce high quality barrier film which is an essential component in the flexible food packaging segment. The Group is optimistic that global demand for its high quality barrier film as well as its other quality blown film products will continue to rise.
The Group’s expansion into cast polypropylene (“CPP”) and BOPP film manufacturing is on track with the impending completion and commissioning of the new CPP plant by end of 2015 and BOPP plant in 2016.
Falling crude oil prices, fluctuations in commodity prices, coupled with capital flows and currency volatility continue to create great uncertainty in the global marketplace. The Group remains vigilant and will continue to address these fluctuations on a proactive basis. In addition, the Group has continued to embark on series of initiatives to boost operational efficiency and quality of its products through machinery modifications and upgrading which is expected to further enhance the quality of its products. Coupled with competitive pricing, the Group remains optimistic that it will be able to maintain its global market position while penetrating into new markets for its products.
The domestic property market continues to be driven by Government policies and cooling measures adopted with overall demand for higher-end products being affected by such measures. The Group has realigned its focus to affordable homes whereby demand has remained resilient and intact. For the current financial year, the Group expects to see more of such launches in its existing Taman Scientex Senai, Kulai and Pasir Gudang projects in line with the state government’s Rumah Mampu Milik Johor (RMMJ) initiative which the Group is well placed to undertake as the Johor state government implements more of such RMMJ projects. The impending Goods and Services Tax (GST) in April 2015 is likely to have limited impact on the demand for the Group’s products which are mainly residential in nature. On the other hand, the imposition of GST will probably lead to a slight increase in prices of construction materials leading to higher prices. However, it is not expected to dampen demand for products in the affordable housing range which the Group expects to remain resilient. The Group will continue to strive to provide more innovative lifestyle products as it seeks to distinguish itself amongst its peers.

 ( Q2FY2015 report March.2015 - FY2015)
In Malaysia, Scientex is mindful of the goods and services tax (GST), which will be implemented starting April 1 this year.
The company said it expected the GST to result in costlier construction materials for its property business. Scientex said, "the imposition of GST will probably lead to a slight increase in prices of construction materials leading to higher prices. However, it is not expected to dampen demand for products in the affordable housing range which the group expects to remain resilient.”
森德公司董事经理林炳仁在今天的文告中表示，公司新的聚乙烯膜（PE）生產线已成功运作，而从事消费品包装（CPP）和双向拉伸聚丙烯薄膜（BOPP）新厂房，已经在今年年头开始动工，预计可分別在2015年尾和2016年中投入运作。

他说：「目前国內使用的CPP和BOPP大部份都是由国外入口，因此，对本地业者来说还有很大的市场，以及运输上的优势。」同时，他也认为，在国內城市化及人口增长的推动下，食品及饮料领域对软包装（flexible packaging）的需求也会不断成长。

明年3亿资本投资森德公司在2014年至2016年计划投入总额3亿令吉的资本投资，將PE、CPP和BOPP產能分別提高至每年4.8万、1.2万以及6万公吨。「產能扩充可以让我们为区域客户提供更有竞爭力的价格、以及素质更高的產品。」

 展望未來，森德綜合在第二季減少美元借貸至58%（首季為77%）後，將可減少受馬幣疲軟的衝擊。
森德公司（Scientex，4731，主板工业股）支持柔佛州政府在可负担房屋计划下，为巴西古当区居民提供可负担房產的举措。由森德公司全权持有的ScientexQuatari私人有限公司將在森德巴西古当建设1420间可负担房產。有关產业计划预定在2017年竣工。这1420间可负担房屋的价格介於8万到15万令吉。发展总值估计是1亿8400万令吉。

莫哈末沙利夫指出，「森德公司已在可负担房產领域建立了良好信誉与品牌。我们在过去20年，特別是森德產业臂膀的主要基地，柔佛都以准时交屋记录得到市场的认同。自1995年，我们已经兴建和交出超过9000个单位，房价低於20万令吉的可负担房產。当中，7600个单位位於森德巴西古当。截至目前，这里的人口估计达3万人之多。」

他说，州政府目標是在2018年於居者有其屋计划下建设4万2000个单位房屋。目前，我们已在新山、古来、努沙再也和巴西古当推出可负担房屋计划，我们也会在短期內推出其他阶段的房屋计划。

Given the faster growth in the manufacturing segment, SCI would achieve a more healthy earnings mix with an estimated 41% of FY17 operating profit, which will come from the manufacturing segment (FY14: 36%), which could rise to 45% of total earnings once its new capacity comes fully on-stream in FY18. This is particularly important during an economic downturn, given the less cyclical nature of the packaging business, although we acknowledge SCI’s affordable houses are the most resilient product within the property sector. 
Over the next two years, Scientex would be focusing on affordable houses (targeting 80-90% of total launch) in the southern region, which are relatively insulated against the overall property sector slowdown amid the government’s property-cooling measures. Scientex’s current unbilled sales amount to about RM650m, which could provide earnings visibility over the next 1-2 years. 
(UOB KayHian June.2015)
SCIENTX耗資2億1千900萬令吉，以收購柔佛326英畝永久地契地皮。該公司董事經理林炳仁透過文告表示，公司看好柔佛“可負擔房屋”產業的需求，因此分別向兩家公司Bukit Gambir公司和Jayaplus Bakti收購252英畝及74英畝地庫。
“有關新收購的地庫距離新山市中心及馬新第二通道33公里及25公里。”上述2块土地，毗邻森德在柔佛古来的综合城镇发展计划Mutiara Mas花园和其他的住宅区。他表示，上述的收購促使公司未發展地庫從870英畝增至1千200英畝。
他表示有關收購需要通過來臨的股東特大批准，購地資金將來自銀行的借貸，預期今年第四季可完成相關收購程序。
展望未來，林炳仁表示，公司有信心2015年的製造業務仍取得不錯的表現與擴展，產業業務方面，未入賬銷售約6億令吉左右，可支持至2017年。
SCIENTX proposed to acquire 326.1 acres of freehold land in Pulai, Johor for a total purchase consideration of RM219.0m or RM15.4psf. The proposed acquisition would increase total landbank to 1.2k acres or +38%. While management did not indicate their plans for the land, we think they are likely to develop an affordable housing township as this has been their focus so far. 

 Assuming a land cost to GDV ratio of 20%, we estimate a GDV of RM1.1b for the acquired land. We think the acquisition price is fair as it is close to the average value of previous land transactions in Pulai at RM15.6psf. The company mentioned that they plan to fund the acquisition with RM180.0m debt and the balance in cash. We expect the additional borrowings to increase FY15E gearing to 0.5x (from 0.2x), within management’s expected final net gearing range of 0.5-0.6x. 
(Kenanga research June.2015 - FY2015)

 Packaging manufacturer Scientex Bhd, which is also involved in property development, intends to buy 326 acres of freehold tract in Pulai, Johor Bahru, for RM219 million cash to expand its land bank.
In a statement today, Scientex said that the lands are situated near to Scientex’s integrated township development in Skudai, Johor, known as Taman Mutiara Mas, and various other matured residential areas.
The group’s wholly-owned subsidiary, Scientex Quatari Sdn Bhd, today entered into conditional sale and purchase agreements with two different vendors, to acquire 252 acres from Bukit Gambir Company Sdn Bhd and 74 acres from Jayaplus Bakti Sdn Bhd.The proposed acquisitions will be funded by internally generated funds and bank borrowings, according to the statement.
"The proposed acquisitions would increase our remaining ongoing and undeveloped land bank to approximately 1,200 acres from 870 acres currently, as we strive to capture anticipated long-term growth in demand from a steadily growing population," he said.
Located under the jurisdiction of Majlis Perbandaran Johor Bahru Tengah, the new lands are about 33km from Johor Bahru City Centre, and 25km from the customs checkpoint of the Malaysia-Singapore Second Link. Meanwhile, a newly-proposed Pulai Jaya Interchange Exit to the Malaysia-Singapore Second Link would also be situated about 5km away.

 森德宣布，解散位于越南的冬眠子公司Scientex Polymer（简称SPV）。在还清了所有债务，及从HEPZA接获正式解散的决定后，SPV就会正式解散。森德说，解散SPV符合公司脱售非核心业务的计划，因这可让森德继续专注于工业包装及消费者包装产品的核心业务。SPV原本是一家生产汽车地垫的公司。

森德公司宣佈和其日本合作伙伴日本二村化工（Futamura Chemical）签署一项股权出售协议，將森德长城私人有限公司的5%股权卖给后者，转手价是4000万令吉。
一旦完成上述交易，二村化工將持有森德长城的10%股权，而森德公司则持有其余的90%股权。森德公司表示，二村化工增持森德长城反映它们对后者的前景有信心。
森德长城目前已投资5000万令吉来扩充其聚丙烯（CPP）包装膜生產线，以扩大其產品组合。

Scientex Bhd has entered into a share purchase agreement with Mondi Consumer Packaging International GmBH (盟迪怡保公司前身是同福塑胶工业，成立於1973年。2012年正式被德资国际包装及纸张公司集团盟迪包装国际公司全面收购) to acquire 21.05 million ordinary shares of RM1 each, or the entire paid-up capital of Mondi Ipoh Sdn Bhd for RM58mil.
Mondi Ipoh manufactures plastic packaging products. The company has factories situated at Sungai Siput and Chemor, Ipoh, Malaysia.
Scientex said in a Bursa Malaysia announcement that the acquisition would enable the company to diversify its packaging product range with consumer products for fast moving consumer goods and food and beverage sectors, and industrial products including form-fill-seal (FFS)成型灌裝封口.

The company said for the financial year ended Dec 31, 2014 (FY14), Mondi posted a net profit of RM144,148, a huge drop from the RM2.88mil (PE=58mil/2.88mil=20) posted in the previous financial year. It said the lower net profit was mainly due to a one-off gratuity payment of RM2.7mil. The company’s net assets dropped to RM37.24mil in FY14 from RM46.32mil in the previous year. Scientex said the acquisition took into consideration the enterprise value over normalised earnings before interest, tax, depreciation and amortisation of 6.44 times, which also took into account the one-off gratuity payment. The company added that the acquisition also took into account a price-to-book multiple of approximately 1.56 times over the audited net assets of Mondi Ipoh for FY14 of RM37.24mil.

 Scientex said the company would benefit once Mondi Ipoh becomes a wholly-owned subsidiary. It added that there would also be an increase in production capacity (林炳仁预计，完成收购计划后，德森的产量将增加30%，从每年6万公吨，增至7万6800公吨)
 as well as a larger customer base both locally and regionally. The company said the acquisition, to be completed by Aug 11, would have a positive contribution for the financial year ending July 31, 2016.
http://www.thestar.com.my/Business/Business-News/2015/08/06/Scientex-to-buy-Mondi-Ipoh-for-RM58mil/?style=biz Aug.2015 - FY2015
As the Group’s raw materials are mainly derived from resins which prices tend to fluctuate in line with the direction of crude oil prices, the Group continues to remain cautious and vigilant in managing this volatility. In addition, on-going efforts by the Group to boost its operational efficiency and quality of its products remain in focus and has yielded positive results. The setting up of the Scientex Technical Film Centre with its focus on new product development and quality improvements is expected to further boost demand for the Group’s products moving forward. 
(Quarterly report 3QFY2015)

Debts
Moving forward, SCIENTX should be less impacted by weaker MYR as the company reduced their USD borrowings exposure to 47% as of 3Q15 (vs. 58% in 2Q15).

(Investor presentation 3QFY2015)
Dividend policy

 - 他指出，股東都是因為該公司良好的週息率（Dividend Yield，DY），才給予支持。該公司在過去5年派發10%至26%的股息，週息率亦達3.44%。
- 林炳仁表示，股東曾在去年的股東大會董事局要求設立股息政策，董事目前正在商討中。基本上，在過去數年，該公司都有股息派發準則，就是以從淨利取出1/3的資金，作為股息派發給股東。
http://www2.orientaldaily.com.my … 1iE0TYb5AiM21643S5o (May.2011 - FY2011)

 Scientex Bhd’s earnings rose 21.2% to RM20.38 million in the third quarter ended April 30, 2011,underpinned by its property development and also announced a dividend policy to pay a minimum of 30% of earnings as dividends. “The dividend policy would be effective from FY2011 onwards, and is subject to the group’s operating results, business prospects and new investment plans, amongst other considerations,” it said.
http://sg.news.yahoo.com/scientex-proposes-30-earnings-dividends-095045354.html# (June.2011 - FY2011)

 - The group declared its first single tier dividend of 7 sen which is 1 sen higher than that reported in the corresponding quarter. For the whole year, we have assumed a payout of 30%, which is in tandem with the group’s minimum payout policy. This means we expect a final dividend of 8 sen in 4Q13, giving an aggregate dividend yield of 3.0% for FY13 and 4.0% for FY14. 

 ( TA Securities June.2013 - FY2013)
- According to Lim, the group currently has two expansion plans in the pipeline. By the end of the year, it will complete a RM45 million expansion of its stretch film capacity by 26% to 194,000 tonnes a year from 154,000 tonnes at its factory in Pulau Indah. This is on top of the additional 26% tonnage boost from the acquisition of GW Plastics. 

http://www.theedgemalaysia.com/highlights/253607-highlight-scientex-continues-aggressive-expansion.html (Sept.2013 - FY2013)

- 林炳仁说，「2013財政年，不但是公司欢庆45週年，同时也象徵公司迈入新的里程碑，营业额与净利取得创纪录的表现。这项成就显示公司旗下的製造与產业业务持续成长，以及近期完成的收购活动带来协同效应。因此，除了派发每股9仙终期股息，我们也宣布派发每股10仙特別股息，以纪念公司45周年庆。」
- 若排除每股10仙的特別股息，森德在2013財政年的股息派发为每股16仙，或总值3540万令吉，这相等于净利的32.1%，超越了该公司至少把净利的30%拿来派息的政策。
- 森德在文告中称，每股10仙的特別股息將在公司欢庆45周年当天，即11月25日支付，而另外的每股9仙终期股息將在即將召开的股东常年大会中，寻求股东通过。

- In a report, Kenanga Research raised the possibility of Scientex spinning off its property arm to unlock the value of the property segment. “We reckon that this disparity had been a dampener on the stock’s historical valution… our analysis reveals it can raise up to RM349mil to RM488mil cash if so,” says the brokerage.
- Commenting on that, Lim says it does not have immediate plans to split the two core businesses. “Size is important to us. With the billion-ringgit size, we have more opportunities to grow our business,” he says.

- The group’s game plan to expand can be summed up into finding a niche in the segments it is involved in. Under its manufacturing umbrella, the two major divisions are industrial packaging and consumer packaging. Its approach in growing the industrial packaging division is through higher volume, better efficiency and lower cost while its plan to develop consumer packaging is by offering food preservation features, printing, cutting and others to add value.
- Lim says it will continue to innovate to use nano layer technology to produce super thin gauge film. As the raw material input for the each pallet wrap is lower, the company would be able to save on material cost, thus enhancing its margin by 20% to 30%, depending on the countries and sectors.
- Meanwhile, Scientex is strengthening its foothold in the consumer packaging arena via mergers and acquisitions, and through an expansion plan.
- In April, Scientex announced it will invest RM50mil to increase its blown film production in its Pulau Indah plant, which is expected to bring the capacity of the product to 51,000 tonnes with expected completion in August 2014. He notes that the market for flexible packaging is over US$80bil and there are many other areas in consumer packaging it can explore. “As people are more conscious about hygiene and safety in food packaging, future growth for this segment will be exciting,” he enthuses. Scientex exports about 95% of its stretch film products and 40% of blown film, most of them to South-East Asian countries.
Going forward, he expects to export 50% of blown film following its enlarged production capacity in the next one to two years.
- Interestingly, the same philosophy is used for its property division. Lim says it plans niche products for the strategic parcels while it also caters to the affordable housing segment.
In fact, 60% of its products are under the affordable category while 40% are lifestyle products.
http://www.thestar.com.my/Business/Business-News/2013/11/23/Scientex-aims-to-double-size-MD-Lim-says-the-firm-has-clear-direction-strategy-to-achieve-this-in.aspx/ (Nov.2013 - FY2014)
- 连同之前派发的7仙中期股息和10仙特別股息，森德公司在2013財政年的股息派发总数达到5750万令吉，相等於集团约52.1%的净利，超出了森德公司承诺派发最低30%净利给股东的股息政策。
http://www.orientaldaily.com.my/index.php?option=com_k2&view=item&id=90160:5&Itemid=198 (Dec.2013 - FY2014)

在股息派发方面，森德已落实派发至少30%的净利作为股息政策，而2013财年因45周年派发每股10仙特别股息，使全年股息达26仙。
http://www.nanyang.com/node/610645?tid=687 March.2014 - FY2014

Corporate exercise

 在2007年，該公司宣佈分別進行股票分拆，將每股面值1令吉的股票，拆細成兩股面值50仙的股票，以及以2股送1股比例，發送高達7000萬股紅股。此外，該公司亦在同年宣佈，以50股送1股庫存股比例，作為股息派發給股東。因此，在這些企業活動帶動下，該公司的股票數額亦從截至2006年10月27日的6608萬5900股，激增248%，至2億3000萬股。此外，再加上其股價上揚，更帶動其市值從06財政年的1億6643萬令吉，飆升262%，至6億零260萬令吉，顯然該公司為股東製造了不少價值。
http://www2.orientaldaily.com.my … 1iE0TYb5AiM21643S5o (May.2011 - FY201FMAN1)

Results

 - 在工業包裝製造業務銷售強勁帶動下，加上產業臂膀貢獻顯著，森德綜合（SCIENTX, 4731, 主板工業產品組）截至2011年1月31日，次季淨利漲升47.44%至1千907萬6千令吉，前期為1千293萬8千令吉，並帶動首6個月淨利從前期2千566萬6千令吉，揚升40.58%至3千608萬1千令吉。次季營業額較前期1億5千871萬4千令吉，走挺22.79%至1億9千488萬6千令吉，而首半年營業額也增加17.89%至3億8千151萬1千令吉，前期為3億2千362萬8千令吉。
http://biz.sinchew.com.my/node/45019 (Mar.2011 - FY2011)

 For the nine-months period ended April 30 FY2011, its earnings rose 32.9% to RM56.47 million from RM42.49 million while revenue increased by 19% to RM598.82 million from RM503.13 million. “The better financial performance was mainly attributed to the group’s property development segment, which saw 62.1% growth in revenue to RM159.0 million for the nine-month period, against RM98.1 million of the previous year’s nine-month period,” it said.
http://sg.news.yahoo.com/scientex-proposes-30-earnings-dividends-095045354.html# (June.2011 - FY2011)

 - 森德綜合（SCIENTX，4731，主要板工業）受益于房地產業務，第三季淨利年增21.2%到2038萬8000令吉。該公司向馬證交所報備，截至4月底第三季，營業額按年成長21.1%，報2億1731萬令吉，每股盈利9.48仙。該公司首三季營業額揚升19%，達5億9882萬令吉，淨利則年增32.9%，報5646萬9000令吉，累積每股盈利26.23仙，累計股息11仙，優于去年同期的8仙。
http://www.chinapress.com.my/node/227343 (June.2011 - FY2011)

 - 受益于产业（增长62.1%）和制造（增长8.6%）业务的贡献显著，森德综合累积3季的净利和营业额，分别录得33%与19%的增长。
http://www.nanyang.com/node/332457 (June.2011 - FY2011)

 - Stretch film producer and property developer Scientex Bhd posted net profit of RM20.77 million in the fourth quarter ended July 31, 2011, up 16.5% from RM17.83 million a year ago. Revenue rose 7.1% to RM205.20 million from RM191.68 million. Earnings per share were 9.66 sen compared with 8.28 sen.
- For the financial year ended July 31, 2011, its earnings rose 28.1% to RM77.24 million from RM60.32 million in the previous financial year while revenue increased by 15.7% to  RM804.02 million from RM694.82 million. Property revenue rose 45.9% to RM218.6 million from RM149.8 million a year ago. Sales from the manufacturing segment grew 7.4% to RM585.5 million from RM545.0 million. Group operating profits (EBIT) increased 39.1% to RM97.4 million, with the property development segment accounting for RM62.0 million and the remaining RM35.40 million from the industrial packaging segment. The higher EBIT contribution from the property segment was largely due to the high-end project in Skudai  at the center of Iskandar Malaysia in Johor.
http://sg.finance.yahoo.com/news/Scientex-4Q-net-profit-16-5-tem-3162807604.html (Sept.2011 - FY2011)

 - 森德綜合首季淨利成長高達22.5%至2千140萬令吉，營業額則上漲14.5%至2億1千380萬令吉。此強勁業績表現符合市場預期。達證券分析員表示，此出色業績是受製造和產業兩大業務推動，製造部門成長8%，而產業收益揚升6%。淨利按季則微升3%和營業額小漲4%。
http://biz.sinchew.com.my/node/55007 (Dec.2011 - FY2012)

- 受益于制造和房地产业务的贡献，森德综合（Scientx，4731，主板工业产品股）截至2012财年上半年，净利按年上涨13.1%至4080万令吉；营业额则按年增长12.3%至4亿2830万令吉。占森德综合总营业额69%的制造业务中，拉伸膜生产来自本地和海外的需求都增加（按年上涨7.7%），出口至亚太区域的销售增长11%。
http://www.nanyang.com/node/431549?tid=461bxl (Mar.2012 - FY2012)

 - Scientex’s 9MFY12 net profit of RM60.53mn grew by 7.2% YoY, attributed to both its manufacturing and property segments. 
- Accounting for 72% of the group’s total revenue, its manufacturing division revenue grew by 6.8% YoY to RM469.7mn attributable to the commissioning of 1 new packaging line in September last year and 2 additional PP strapping band lines early this year. 
- Meanwhile, its property segment that makes up 28% of the group’s revenue grew by 16.6% YoY to RM185mn on the back of higher percentage recognition from the locked in sales and new launches from its Taman Mutiara Mas development in Skudai. 
(TA Securities June.2012 - FY2012)

 - Industrial packaging manufacturer and property developer, Scientex Bhd, posted a 10.9 per cent higher pre-tax profit of RM107.17 million for the financial year ended July 31, 2012 from RM96.64 million recorded for the same period last year. Revenue rose 9.6 per cent to RM881.03 million, during the period under review, from RM804.02 million chalked up previously. 
http://www.btimes.com.my/Current ... _html#ixzz26oZyEruB (Sept.2012 - FY2012)

 － Overall the group’s FY2012 revenue grew by 9.6% YTD (+10.1% YoY), attributable to both its manufacturing (+8.8% YTD) and property segment (+11.7% YTD). The encouraging growth from its manufacturing segment was driven by the installation of one new stretch film line in September 2011 and 2 new PP strapping band line in February 2012. With these new lines in place, production of stretched films and PP strapping bands are estimated to have increased by an estimated 24kMT/year and 120kMT/year each. Meanwhile the positive growth from its property segment was attributed to the higher end property sales. Its manufacturing segment incurred a one off cost arising amounting to RM2mn from the relocation of the woven production to Vietnam. Notwithstanding that, PBT for this segment recorded a positive growth. 
(TA Securities Sept.2012 - FY2012)

 - Scientex Bhd's earnings rose 20.6% to RM24.87mil in the first quarter ended Oct 31, 2012 from RM20.63mil a year ago, due to strong growth in its manufacturing and property divisions. It said on Wednesday its revenue increased by 13% to RM241.61mil from RM213.76mil. Operating profit was 18.6% higher at RM31.48mil from RM26.54mil. Earnings per share were 11.57 sen compared with 9.59 sen.
- Scientex said the industrial packaging manufacturing division's revenue rose 12.0% to RM172.6mil from RM154.1mil a year ago, boosted by higher regional exports. Its property division reported a 15.6% increase in revenue at RM69.0mil due to increased revenue recognition from ongoing projects.
http://www.thestar.com.my/Story/?file=%2F2012%2F12%2F19%2Fbusiness%2F20121219183938&sec=business (Dec.2012 - FY2013)

 - Scientex Berhad reported RM24.5mn in net profit for its 1QFY13 result, which makes up 23% of our full year forecast. Its revenue grew by 13% YoY to RM241.6mn (+6.9% QoQ) attributable to both its manufacturing and property segment. Its manufacturing segment grew by 12% YoY on the back of higher export demand in the Asia Pacific region. Meanwhile, its property segment grew by 15.6% YoY mainly driven by its Ayer Keroh and Skudai projects and a steady demand from its Pasir Gudang project. 

 (TA Securities Dec.2012 - FY2013)

 - Scientex Berhad saw a 26.9% jump in its net profit for the second quarter ended Jan 31, 2013, to RM25.6 million by reaping maiden contributions from its newly-acquired businesses of GW Plastics Holdings Berhad. Group revenue in 2Q13 rose 26.4% to RM271.1 million from RM214.5 million previously. The increase was due to higher demand for Scientex’s stretch film from export markets and augmented by the contributions of stretch film, and food and beverage (F&B) packaging sales from Great Wall Plastic Industries Berhad and GW Packaging Sdn Bhd.
- The acquisitions of these subsidiaries were completed in January 2013. For the group’s half yearly results, it recorded a net profit of RM50.5 million, while its revenue came in at RM512.7 million.
http://www.fz.com/content/scientex-records-269-boost-2q-net-profit (Mar.2013 - FY2013)

 - Scientex 1HFY13 net profit grew by 23.7% YTD (26.9% YoY). The stronger growth came mostly from Scientex’s organic expansion coupled with higher margins from property sales from Johor. Despite the consolidation, GW Plastic only contributed RM900k to the group’s bottom line. This is due to the high financing cost and corporate expenses associated to the acquisition of GW Plastic. 

 - We have adjusted for a higher margin for its manufacturing segment to consider for the potential acquisition synergies such as scalability and bargaining power with suppliers. As a result, PBT margins for this segment are increased by 0.3ppt – 0.8ppt for FY13-FY15. That said, we have also adjusted for a higher effective tax rate of 20% (previously 18%) and lower interest cost from 6% to 4% as guided by management.  

 (TA Securities Mar.2013 - FY2013)

 - For the third quarter ended April 30, 2013, it earnings rose 50% to RM29.53mil from RM19.71mil a year ago. Its revenue rose 52.1% to RM345.10mil from RM226.76mil. It declared a single tier interim dividend of 14% or 7.0 sen which will go ex on July 16. For the nine months ended April 30, 2013, its earnings rose 32.2% to RM80.02mil from RM60.53mil while revenue rose 30.9% to RM857.80mil from RM655.01mil.
- Scientex said the higher earnings were due to the enlarged scale of operations after the successful acquisition of GW Plastics. Scientex's property sales in the Iskandar Region also helped boost its profitability.
http://www.thestar.com.my/story.aspx/?file=%2f2013%2f6%2f25%2fbusiness%2f20130625140059&sec=business (June.2013 - FY2013)

 - 涉及包装与產业领域的森德（SCIENTX，4731，主板工业股）公布创纪录的2013財政年（截至7月31日止）业绩表现，其全年营业额45年以来首度衝破10亿令吉的关卡，至12亿令吉，与上一財政年的8亿8100万令吉，按年成长39.5%。 与此同时，森德全年净利按年成长31.4%，从上一財政年的8390万令吉，增至1亿1030万令吉。
http://www.orientaldaily.com.my/index.php?option=com_k2&view=item&id=76249:19&Itemid=198 (Sept.2013 - FY2013)
- 1Q14 Group revenue rose by 51.0% to RM364.8m, amid a 67.5% jump in revenue in the manufacturing segment (RM172.6m) and a 9.7% increase in revenue from the property segment (RM75.6m). The sharp increase in manufacturing revenue was due to the acquisition of Great Wall in January 2013 (2Q13), in addition to an increase in export sales of stretch film. Meanwhile, revenue from the property segment also improved on higher take ups of high- end development in Ayer Keroh, continued strong demand for affordable housing in Pasir Gudang and new contribution from industrial properties in Senai. 

 - Nevertheless, the increased contribution from the lower margin manufacturing segment (operating margin of 6.1% compared to 29.3% for the property segment), coupled with the timing issue in passing down the higher raw material prices caused overall NP to grow by a slower pace of 18.0% YoY.

 ( Kenanga Dec.2013 - FY2014)
SCI’s 1HFY14 revenue of MYR748.3m (+45.9% y-o-y) was contributed by: 
i) MYR577.7m in revenue from the manufacturing segment (+57.8% y-o-y; 77.2% of total revenue), and 
ii) MYR170.6m revenue from the property segment (+16.4% y-o-y; 22.8% of total revenue). 

 The higher turnover at the manufacturing segment was driven mostly by increased demand for SCI’s stretch film products from the Asia-Pacific export market, while the property segment’s higher revenue was attributed to growing demand for SCI’s new property project launches in Johor and Melaka. All in, the company’s 1HFY14 core earnings expanded 25.3% y-o-y to MYR63.3m 
  ( RHBOSK March.2014 - FY2014)

The plastic packaging manufacturer and property developer’s 1Q15 net profit of RM30.3mil was below expectations, making up only 17.9% of the research house’s full year forecast of RM169.7mil – already lower than consensus forecast of RM180.3mil. 

Kenanga said it had lowered its forecast following the move by Scientex’s consumer packaging PE film segment to lower average selling prices (ASPs) in order to increase presence in new markets across South-East Asia.The net profit plunge of 38% quarter-on-quarter from this strategy has caused EBIT (earning before interest and tax) margin compression in the manufacturing segment (5% in 1Q15 vs 6% in 4Q14), as well as foreign exchange loss of around RM5mil from dollar borrowings.

 This was despite revenue rising by 18% year-on-year to RM431.1mil, on the back of an 11% jump in manufacturing segment revenues and 46% increase in the property segment revenues. “The former was mainly driven by additional blown films capacity while the latter was led by the contribution from its latest development in Taman Scientex Senai. Despite such items, the above mentioned market penetration strategy resulted in overall net profit growing at a slower pace of 3%,” Kenanga said.

 The research house said it was expecting weaker forward earnings from the manufacturing segment as Scientex continues its market penetration strategy in the second quarter of the financial year 2015.  It said Scientex would continue to face forex losses in view of the weakening of the ringgit against the greenback, seeing as to 77% of borrowings in Q1 was denominated in the dollar.
http://www.thestar.com.my/Business/Investing/2014/12/18/Kenanga-Research-downgrades-Scientex-TP-slashed/?style=biz Dec.2014 - FY2015

Bear case
Risk to our forecast and fair value
  1. Manufacturing – Hike in raw material prices due to unforeseen circumstances like shutdown in petrochemical plant the Low Density PolyEthylene (LDPE) plastics resin. With a number of petrochemical plants coming up in the region, the possibility of the above event happening is becoming more remote. The worst impact would be a temporary hike in price before the situation reverts back to normal. On the other hand, a slow and steady price hike in raw materials can be passed on to customers.
  2. Property – In this segment, the concerns are A) Bank Negara introduce more measures to curb speculation and B) Further hikes in cement and steel prices squeezing margins. Scientex in not much affected by the first concern, as it is concentrated in the affordable segment of the property market where most buyers are owners’ occupiers. Cement and steel price hike do pose much of a problem to Scientex, save for a few percentage point in margins as its land bank was acquired when land prices was low (average land price of RM6 psf). Besides the construction is carried out by its own construction arm which helps to reduce outflow in addition to being vigilant against wasteful practices. 
  ( Jupiter July.2013 - FY2013)

 - Sharp increases to crude oil/resin prices which could disrupt the raw material pass-through mechanism.
http://klse.i3investor.com/blogs/kenangaresearch/40840.jsp (Nov.2013 - FY2014)
- Sharp increases to crude oil/resin prices which could disrupt the raw material pass-through mechanism. 
- Property sector risks, including negative policies.    

   ( Kenanga Dec.2013 - FY2014)

Bull case

~ Enquiry on Scientex Berhad (SCIENTX) 森德综合 ~

http://chyithong.blogspot.com/2013/04/enquiry-on-scientex-berhad-scientx.html

  ( RHBOSK March.2014 - FY2014)

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