"Quality First ,Credit First"

scientex aims to double size

by:Taian Lamination Film     2020-09-29
BEING a 45-year-
The old company Scientex Bhd has a considerable share of the ups and downs.
After two major financial crises-the Asian financial crisis in 1997 and 2008 global financial crises-the company adopted the \"choice and focus\" approach in developing its business.
Lim Peng Jin, managing director, hopes to double the size of the company in the next five years.
In an interview with StarBizWeek, he said: \"We have clear directions and good strategies to help us achieve this goal.
The company recorded the rm1.
Revenue for the fiscal year ended July 31, 2013 is 2bil (FY13).
This strategy is not achieved overnight.
At a time when the economic environment was favorable in the 1990 s, the group had about 80 companies, ranging from the manufacture of woven bags, cartons, textiles to real estate development, and stretch film production.
\"Everything is profitable in the medium term.
Because the outlook is optimistic.
\"When the Asian financial crisis hit us in 1997, we saw the problem because some units were profitable and others were losing money,\" he said . \".
While studying at Harvard, he learned the importance of having a competitive advantage in business.
From 2000 to 2005, the company began to transform and 80 operating units were merged into 30.
\"We chose the businesses we want to grow and eliminated those that we want to stop.
\"From there, we chose packaging and real estate as our core business,\" he said . \".
It then directs all the proceeds obtained from the divestiture to two main parts.
At present, he said, the company distributes resources almost equally between the two departments.
The company\'s manufacturing sector, which is classified as the industrial products sector in Bursa, Malaysia, is its main revenue driver, accounting for about 75% of its revenue in fiscal 13.
However, its property sector contributed about 63% of operating profits for fiscal 13.
In a report, Kenanga Research presents the possibility that Scientex divested its property division to unlock the value of the property portion.
The brokerage company said: \"We think this difference has caused damage to the historical value of the stock . . . . . . Our analysis shows that it can raise up to RM349mil to rm48 if this is the case
Lim commented that it had no plans to split the two core businesses immediately.
\"Size is very important to us.
And billion-
We have more opportunities to develop our business . \"
The group\'s expansion plan can be summarized to find a niche in the market segments it participates in.
Under its manufacturing umbrella, industrial packaging and consumer packaging are two main sectors.
The way it develops the industrial packaging sector is by increasing volume, increasing efficiency and reducing costs, while its plan to develop consumer packaging is by providing food preservation functions, printing, in order to increase value, cutting and other.
Stretch Film production is the crown jewel under its industrial packaging, and Scientex is currently the world\'s third largest stretch film company with an annual output of 200,000 tons for 16 production lines.
15 production lines are in production and are expected to be put into production next month, he said.
Part of this is the contribution made through the merger and acquisition activities of the two rm283 units of giva plastic Holdings Limited.
2mil, before it increased its stretch film production capacity by 28%.
Lim said it will continue to innovate to produce ultra-thin films using nano-layer technology.
Due to the low input of raw materials for each pallet package, the company will be able to save material costs, thus increasing the profit margin by 20% to 30%, depending on the country and department.
Meanwhile, Scientex is strengthening its foothold in consumer packaging through M & A and expansion plans.
On April, Scientex announced that it would invest 50 million yuan to increase the production of blown film at its Pulau Indah plant, which is expected to bring production capacity to 51,000 tons and is expected to be completed by August 2014.
This is after the integration of GW plastic\'s business.
It recently proposed to acquire two-way tensile polypropylene (BOPP)
Seacera Polyfilms Sdn Bhd, a film manufacturer for RM40mil, allows it to further diversify in consumer packaging.
He pointed out that the market for flexible packaging has exceeded $80, and there are many other areas to explore in terms of consumer packaging.
\"As people pay more attention to the hygiene and safety of food packaging, the future development of this area will be exciting,\" he said excitedly . \".
Scientex exports about 95% stretch film products and 40% blow film products, most of which are exported to the South
East Asian countries.
Looking to the future, he expects to expand production capacity in the next one to two years, the export of blown film will reach 50%.
He said that compared the two packaging businesses, the business model is different and the focus is different.
\"If you mix the two together, it will be very difficult,\" he joked . \".
Interestingly, the same philosophy is used in the mixed property for the division of the property.
Lim said it plans to provide niche products for strategic plots, while also serving the affordable housing sector.
In fact, 60% of the company\'s products belong to affordable products, and 40% belong to lifestyle products.
\"I believe that no matter what the market conditions, affordable housing always has a market, but high
\"The terminal housing market is more sensitive to the market,\" he said . \"
With the 2014 budget rolling out some cooling measures in the real estate market, Shanda science still sees a strong demand for its recent release.
According to Lim, all terrace houses priced between RM200 000 and RM220 000 have sold a total of 171 units for its Senai project.
\"We launched a new serviced apartment last Sunday (
Highland House)
\"In Malacca, more than half of the units are occupied,\" he added . \".
The average price of the apartment is RM300, 000, and you can walk to the multimedia University Malacca campus.
Its total development value is RM7bil and rm1 has been confirmed.
8 bill of this amount.
Last year, the company\'s real estate sales were RMB yuan and the remaining RMB 5 yuan.
2bil will last for 10 years, Lim said.
\"We have never pursued a high price (land).
When the market is good, we will focus on developing the land we have.
\"When the market is down, we may have the opportunity to expand our land bank,\" he said . \".
Thanks to its good cash flow, Scientex will continue to look for more land with the aim of covering more places, especially in Johor, where a network has been set up across the state.
Currently, the company has projects in Culai, Skudai, Senai and pansir Gudang.
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