SCIENTEX revisited

First, let's identify the Manufacturing segment.

This is from Business Times:

Speaking to reporters after Scientex's shareholders meeting in Subang Jaya yesterday, Lim said with the installation, the plant now boasts eight lines with annual production capacity of 100,000 tonnes of stretch films, an increase of 15,000 tonnes from before.

Previously, I am estimating SCIENTX Manufacturing value to be RM217.61m by using 8x PER and historical earnings. Based on the Company's plan to invest RM14.4m for line expansion, the Manufacturing segment earnings should be able to grow 10%.

By keeping 8.0x PER, Manufacturing segment should worth RM239.37m.

Second, let's identify the Property segment.

These are the lands owned by SCIENTX for Property segment (Source: Annual Report 2010) :

If you look at it carefully, the land at Taman Scientex was last revalued in 1993. Logically, after 17 years that piece of land should worth a lot more than its Book Value.

Based on my simple assumption that each year all the land value increase by 3% annually, the RNAV for SCIENTEX land should worth RM258.07m.

Again, by using SOP, SCIENTX has potential to go up to RM2.16.