KUALA LUMPUR: Affin Hwang Capital research said Scientex's 9MFY19 core net profit of RM219mil, 17% higher year-on-year, came within its and market expectations.

"Overall, the results are within market and our expectations – 9MFY19 core net profit accounts for 71- 72% of street’s and our full-year profit forecasts," it said in a note.

In its earnings announcement yesterday, Scientex said the earnings improvement was owing to better performances in its manufacturing and property segments.

The property division recorded 12% higher EBIT of RM164.4mil due to steady progress billings for its projects in Senai, Pulai, Melaka and Rawang.

Meanwhile, the manufacturing division's EBIT grew 8% y-o-y to RM108mil on higher revenue from the export and domestic markets.

Affin Hwang maintained its buy call on Scientex Bhd but lowered its target price to RM9.90 from RM10.10 previously as it cut its FY19-21E core EPS forecasts following the acquisition of Daibochi .

"We have cut our FY19-21E EPS forecasts by 2% after incorporating the consolidated figures from the acquisition of 61.9%-stake in Daibochi and the higher share base," it said.

Moving forward, Affin Hwang expects the the typically stronger second half of the year to prevail on higher demand for its packaging products and new property launches.