Scientex Berhad (KLSE: SCIENTX) presents a mixed outlook for the coming weeks, influenced by sector-specific challenges and strategic growth initiatives. 

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? Recent Performance & Short-Term Outlook

In the second quarter of FY2025, Scientex reported a 12.1% decline in net profit, amounting to RM123.95 million, compared to RM141.01 million in the same quarter the previous year. Earnings per share decreased to 7.97 sen from 9.09 sen. This downturn is attributed to intense competition in the industrial packaging sector, inflationary pressures, and foreign currency fluctuations . 

Short-term forecasts suggest a modest recovery, with price targets ranging between RM3.60 and RM3.61 over the next two weeks . Given the current market volatility, significant upward movement may be limited in the immediate term. 

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?️ Property Division: A Beacon of Strength

Contrasting the packaging segment, Scientex’s property division demonstrates robust performance. The company has observed strong market interest in recent property launches and has made strategic land acquisitions in areas such as Bestari Jaya (Selangor), Jawi (Penang), Pulai (Johor), and Paya Rumput (Melaka) . These moves are expected to bolster the division’s market presence and contribute positively to future earnings.  

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? Analyst Sentiment & Price Targets

Analysts maintain a positive stance on Scientex, with 12-month price targets ranging from RM3.64 to RM5.75, and an average target of RM4.30, indicating a potential upside of approximately 16.8% from current levels . The consensus recommendation is a “Buy”, reflecting confidence in the company’s long-term prospects. 

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? Strategic Considerations

Scientex’s dual-engine business model, encompassing both packaging and property development, provides a buffer against sector-specific downturns. While the packaging segment faces near-term challenges, the property division’s resilience and growth potential offer a counterbalance. Investors may consider a cautious approach in the short term, with an eye on long-term gains as the company’s strategic initiatives materialize.