Kuala Lumpur: Kenanga Investment Bank Bhd (Kenanga IB) anticipates only a minimal direct impact from the US tariffs threat on Scientex Bhd, as the company operates a manufacturing plant in the United States. This strategic location results in exports to the US constituting less than five percent of Scientex’s total revenue.

According to BERNAMA News Agency, Kenanga IB highlighted that management has projected a challenging outlook for Scientex’s plastic packaging segment. This is attributed to global economic and tariff uncertainties coupled with aggressive market competition. Additionally, recent geopolitical tensions in the Middle East have led to a surge in crude oil prices by more than ten percent, prompting Kenanga IB to monitor potential increases in resin prices.

In a recent filing with Bursa Malaysia, Scientex reported a net profit of RM123.87 million for the third quarter ending April 30, 2025, a decrease from RM130.50 million in the same period the previous year. The company attributed this decline in profit to reduced export sales and foreign exchange losses within its packaging division, which experienced a 6.4 percent revenue drop to RM614.8 million from RM656.9 million.

Kenanga IB noted that Scientex’s property division is expected to remain resilient, driven by strong demand for its affordable properties. The group’s unbilled sales were recorded at RM1.7 billion as of the second quarter of the financial year, reflecting robust take-up rates from recent launches. The research house observed a steady demand for homes priced below RM500,000, alongside an increasing interest in properties ranging from RM500,000 to RM1 million, indicating improving affordability.

Kenanga IB has maintained a ‘market perform’ rating for Scientex, with an increased target price of RM3.60, up from RM3.34 previously. As of 10.53 am, Scientex’s share price had risen by one sen to RM3.35, with 789,000 shares traded on Bursa Malaysia.