KUALA LUMPUR: CGS-CIMB Research has discontinued coverage of Scientex Packaging Bhd due to the reallocation of resources.

After reviewing its research evaluation, the research house said it would no longer cover Scientex Packaging.

"As such, all previous forecasts, valuations and recommendations for Scientex Packaging should no longer be relied upon for investment decisions," it said in a brief note today.

Scientex Packaging's net profit increased 25 per cent for the first quarter (Q1) that ended October 31, 2022, as revenue grew amid higher demand in both domestic and export sales, and lower raw material prices boosted margin. Scientex Packaging is 72 per cent-owned by Scientex Bhd.

Net profit for Q1 FY23 rose to RM12.28 million from RM9.8 million in Q1 FY22, while revenue grew 19 per cent to RM213.92 million from RM180.31 million, the packaging firm's stock exchange filing showed.

Although the group faces an increasingly volatile external environment, demand for its products remains relatively resilient as it continues collaborative work with global and local brand owners to meet its sustainability goals.