Lim AS's comment on SCIENTX. All Comments

Lim AS
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Yes, Scientex did experience a dip, and the market reaction today likely reflected broader concerns, including:
1. Trump’s tariff threats or rhetoric reigniting global trade tensions—this has a knock-on effect on export-heavy sectors, especially manufacturing.
2. Scientex’s exposure to packaging exports, which makes it vulnerable to any disruptions in global trade flows, especially with the US, EU, or China.

However, Scientex remains a resilient counter in the medium to long term, and here’s why it could reverse the trend in coming weeks:



1. Strong Diversification Between Manufacturing & Property
• Manufacturing may face short-term headwinds from global demand and margin pressures due to raw material cost fluctuations.
• But property development is picking up, especially with low land acquisition costs currently and government incentives or easing policies in some regions.
• Scientex’s aggressive landbanking strategy during downturns shows confidence in long-term growth. This could create strong earnings visibility in 2025–2026.



2. Land Acquisitions at Depressed Prices
• Acquiring lands now gives Scientex a first-mover advantage.
• When the cycle turns, these developments will generate higher margins due to lower initial investment costs.
• It shows that the company is forward-looking, aiming to buffer manufacturing risk with more robust property earnings.



3. Financial Strength & Reserves
• Scientex has strong cash flows and a solid balance sheet, giving it room to weather volatility.
• It continues to pay dividends and manage liabilities well—supporting long-term investor confidence.



4. Technically & Sentiment-Wise
• The recent dip may also attract value investors if the stock touches its support zone.
• Any positive sentiment in trade negotiations or a rebound in the property sales figures could trigger a reversal.
• Additionally, with Bursa’s property counters showing renewed interest lately, rotation into value counters like Scientex could occur.



In Summary: Can Scientex Reverse the Trend?

Yes, especially if:
• Property launches are received well (watch for news in Seberang Perai or Johor),
• Export markets stabilise or adapt to tariff shifts,
• Malaysia’s domestic consumption supports the property sector, and
• Global sentiment improves (e.g., less hawkish US policies or China stimulus).

Scientex is known for its discipline and long-term planning, and barring a full-scale global slowdown, its dual-engine business model provides cushioning and room to rebound.

Would you like a technical chart-based analysis as well to check the likely reversal points?

Certainly! Here’s a technical analysis of Scientex Berhad (SCIENTX) as of April 4, 2025:

Current Stock Performance:
• Price: MYR 3.690 
• Day’s Range: MYR 3.650 - MYR 3.720 
• 52-Week Range: MYR 3.400 - MYR 4.680 
• Market Capitalization: MYR 5.68 billion 
• Beta: 0.45 (indicating lower volatility compared to the market)

Technical Indicators:
• Relative Strength Index (RSI): 47.64 
• An RSI below 50 suggests that the stock is approaching oversold territory, indicating potential buying opportunities.
• Moving Averages:
• 50-Day EMA: MYR 3.647 
• 20-Day EMA: MYR 3.647 
• The stock is currently trading slightly above its 50-day and 20-day Exponential Moving Averages (EMAs), which can be a positive signal.
• MACD (Moving Average Convergence Divergence): -0.057 
• A negative MACD indicates that the short-term momentum is weaker than the long-term momentum, suggesting a bearish trend.

Support and Resistance Levels:
• Support: MYR 3.650
• This level has been tested recently and could act as a strong foundation.
• Resistance: MYR 3.720
• Breaking above this level may indicate a potential upward trend.

Chart Analysis:

The stock has experienced a downtrend since reaching its 52-week high of MYR 4.680. However, the recent stabilization around the support level of MYR 3.650 suggests that the selling pressure may be easing. If the stock maintains above this support and breaks through the resistance at MYR 3.720, it could signal a reversal to an upward trend. 

Conclusion:

While Scientex Berhad has faced recent challenges, the technical indicators suggest potential for a reversal in the coming weeks. Investors should monitor the stock’s movement around the identified support and resistance levels, as well as any changes in the broader market conditions that could impact its performance. 

Please note that technical analysis is one of many tools investors use, and it’s essential to consider other factors such as company fundamentals and market news when making investment decisions.
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