Analysts remain positive on Scientex Bhd after the packaging and property group closed FY26 on a strong note, with improved packaging margins and resilient affordable housing demand underpinning earnings growth.
Scientex recorded fourth-quarter (4Q26) revenue of RM1.4 billion, up 17.7% year-on-year (YoY), while reported net profit climbed 29.5% to RM199.9 million. For the full year, revenue increased 6.5% to RM4.81 billion and reported net profit rose 16.8% to RM620.2 million.
TA Securities Holdings Bhd maintained its ‘Buy’ recommendation and raised its target price (TP) to RM4.95 from RM4.82, implying upside of about 34% from Scientex’s last traded price of RM3.70. The research house said FY26 core profit of RM612.6 million was broadly in line with its expectations, with 4Q26 core earnings rising 29.6% YoY to RM188.1 million.
TA Securities attributed much of the earnings improvement to the manufacturing division, where 4Q26 EBIT more than doubled to RM87.5 million as higher selling prices, better product margins and an improved product mix lifted profitability. For FY26, manufacturing EBIT surged 71.9% to RM257.4 million, while its EBIT margin expanded to 9.9% from 6% a year earlier.
The brokerage expects the division to maintain momentum in FY27, supported by demand for consumer and industrial packaging and possible market-share gains as smaller players exit the industry. It also expects Scientex’s property business to remain supportive, backed by RM2.1 billion in unbilled sales and resilient demand for affordable housing.
Affin Hwang Investment Bank Bhd was similarly upbeat, maintaining ‘Buy’ and lifting its TP to RM4.50 from RM4.35 after Scientex’s 4Q26 performance beat its forecasts in both plastics and property. Affin Hwang said plastics EBIT jumped 107% YoY, with the segment’s EBIT margin reaching a record 12.1%, helped by higher average selling prices.
Affin Hwang, however, cautioned that the elevated plastics margins may be difficult to sustain over the longer term once Middle East tensions ease. It nevertheless raised its FY27 and FY28 earnings forecasts by 8% and 6.1%, respectively, reflecting stronger expectations for both the property and plastics businesses.
On property, Affin Hwang pointed to record FY26 sales of RM2.5 billion and RM2.1 billion of unbilled sales as providing earnings visibility. The bank expects continued take-up of Scientex’s affordable housing products and projects RM3 billion in property launches for FY27.
Nomura Securities Malaysia Sdn Bhd also reiterated its ‘Buy’ call but with an unchanged TP of RM4.40, saying Scientex ended FY26 with record quarterly revenue, operating profit and net profit as higher packaging margins lifted group profitability. Nomura calculated FY26 core net profit at RM616.5 million, up 17% YoY and broadly in line with its forecast.
Nomura noted that packaging operating margins expanded to 9.9% in FY26 from 6% previously, supported by a more favourable sales mix and improved operating efficiency. The research house expects FY27 utilisation to improve from the 61% recorded in FY26, although management has guided packaging EBITDA margins to a 12% to 15% range.
For the property division, Nomura highlighted RM2.1 billion in unbilled sales and a development portfolio spanning about 11,000 acres. It expects demand for Scientex’s landed affordable homes to remain firm, while management is targeting launches exceeding FY26’s RM2.83 billion gross development value.
With all three research houses retaining their ‘Buy’ recommendations, the key issue for Scientex heading into FY27 will be whether packaging margins can remain elevated while the property division continues to convert its sizeable unbilled sales and land bank into earnings.
