source: [Blackspy fundamental]
Scientex
Its acquisition of Seacera Polyfilms Sdn Bhd is positive as it would enable Scientex to diversify into an essential component of the consumer packaging product industry, and also to gain a larger share of the market.
Scientex’s ongoing expansion plans and earnings potential within the manufacturing segment could accelerate the prospects of spinning off the group’s property division, which would be a re rating for the stock.
Scientex should not have any issues with funding as its net gearing ratio would only increase from 0.28 times to 0.35 times assuming the rm40 million is funded entirely by borrowings.
Better earnings prospects are expected on the back of new capacities and expansion plans.
This would enable the group to establish a foothold in the relatively untapped thin film market at the same time alleviating bottlenecks blown film capacity which would open up opportunities to utilize the excess capacities in its downstream printing and lamination segments which entails better margins.
