KUALA LUMPUR: Scientex Holdings Bhd's second half of financial year 2024 (2HFY24) performance is expected to be better in anticipation of returning demand for consumer packaging as customers will stock up on their inventory, said RHB Research.

On the property side, the research house is optimistic that Scientex is on track to achieve its property launch of RM2 billion for FY24. 

"As such, we continue to expect the property segment to be the main earnings contributor in the coming quarters," it said in a note. 

Scirntex's second quarter (Q2) FY24 revenue increased 41 per cent year on year (YoY) amid steady progress billings from ongoing projects and robust demand from new launches. 

As a result, RHB Research said Scientex managed to launch RM657 million worth of properties in 1HFY24. 

Although this makes up only 33 per cent of FY23 property launch of RM2 billion, the company is optimistic that it will be able to achieve a higher property launch YoY on the back of upcoming launches in both the central and southern regions. 

"Demand for affordable homes remains healthy, as reflected in the 60 per cent take-up rate for its new launches in 1H24. As such, we continue to expect the property segment to be the main earnings driver in FY24," it said.

Meanwhile, RHB Research said Scientex's Q2 FY23 net profit rose 24 per cent YoY to RM132.1 million, bringing 1HFY24 core earnings to RM270.3 million. 

This is in line with the firm's and consensus estimates, at 49 per cent. 

"Regardless, we believe that this stock remains fairly valued, as it is trading at 10.5 times, in line with its historical mean of 11 times. 

"We keep neutral, with a new target price of RM3.85 from RM3.75 previously," it added.