Matrix 2Q earnings up 11.5% to RM51.8m on higher profit margin

KUALA LUMPUR (Nov 23): Township developer Matrix Concepts Holdings Bhd posted an 11.53% increase in net profit for the second quarter ended Sept 30, 2017 (2QFY18) to RM51.83 million or 8.64 sen a share, from RM46.47 million or 8.2 sen a share last year, due to enhanced profit margin.

Matrix Concepts attributed the higher gross profit margin to increased sales of higher-premium residential properties, as the group’s townships continue to grow in vibrancy and appeal to home purchasers.

In a filing with Bursa Malaysia, the group also declared a second interim dividend of 3.25 sen per share for the financial year ending March, 31, 2018 (FY18), payable on Jan 10, 2018.

However, its quarterly revenue was 9.76% lower at RM202.9 million, compared with RM224.85 million a year ago, mainly due to slower revenue recognition from the group’s industrial developments.

Meanwhile, revenue contribution from commercial properties gained 50% to RM23.4 million, from RM15.6 million prior, also due to project recognition timeline, the filing said.

For the cumulative six-months of FY18, its net profit slipped 1.03% to RM97.38 million or 16.54 sen per share, from RM98.39 million or 17.39 sen per share last year. Its revenue was also down 10.76% to RM375.75 million, against RM421.08 million.

As at Sept 30, 2017, the group’s total undeveloped land bank is approximately 1,600 acres, while unbilled sales grew to a new height of RM1.1 billion, to be recognised over the next two years, compared with RM765.3 million a year ago, and RM933.3 million as at the preceding quarter’s end.

“With home prices in Klang Valley increasingly beyond reach, we are proud to offer not only a value proposition with affordable landed properties to satisfy growing housing requirements, but also better quality of life to the population,” said its chairman Datuk Mohamad Haslah Mohamad Amin in a separate statement today.

“With the township’s excellent connectivity and proximity to the Greater Klang Valley, buyers from this region now make up 60% of new sales from only 5% in 2012. Moving forward, plans are underway to deliver constant launches to sustain our profitability, and to target more buyers from this region,” Mohamad Haslah added.

Additionally, Matrix Concepts expects to launch more projects across its Bandar Sri Sendayan and Bandar Seri Impian townships, to satisfy buyers’ appetite in the coming years.

Meanwhile, the group’s overall development projects, comprising primarily its Bandar Sri Sendayan and Bandar Seri Impian townships, saw their value grow to a record high of RM2.4 billion in ongoing gross development value (GDV) in 2Q18. This represents a growth of almost 30% from the same period a year ago.

Matrix Concepts continues to be upbeat on the increasing population and vibrancy at its flagship Bandar Sri Sendayan township in Seremban, on the back of unabated demand from home buyers in the Greater Klang Valley region.

“Matrix Concepts is on the cusp of exponential growth, not only in terms of returns to shareholders in future, but also the vibrancy and prominence of our Bandar Sri Sendayan township,” said Mohd Haslah.

“Our developments in Bandar Sri Sendayan are suitably priced to meet the requirements of the masses, with launches ranging from affordable to higher-priced offerings. Additionally, we continuously evaluate new investment opportunities that would bring greater vibrancy to our townships and generate recurring income streams.”

“Going forward, we aim to continue to stand out among our peers and are confident of reaching greater heights,” Mohd Haslah added.

At noon break, Matrix Concepts’ shares were down one sen or 0.46% to RM2.19, for a market capitalisation of RM1.62 billion. Over the last 12-months, the stock has risen 17.24% from RM1.87. — theedgemarkets.com

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