Matrix Concepts' 2Q earnings down 2.4% as labour shortage weighs on construction activities

• The group’s unbilled sales stood at RM1.4 billion as at Sept 30, 2022, providing earnings visibility over the next 12 to 15 months.

KUALA LUMPUR (Nov 23): Matrix Concepts Holdings Bhd's net profit for the second quarter ended Sept 30, 2022 (2QFY2023) eased 2.4% to RM50.57 million from RM51.80 million a year ago as labour shortage weighed on construction activities.

The construction group declared a dividend of two sen per share, with the ex-date on Dec 22.

Revenue fell 7.2% to RM222.35 million for 2QFY2023 from RM239.48 million a year ago, said Matrix Concepts in a stock exchange filing on Wednesday (Nov 23).

For the first half ended Sept 30, 2022, net profit grew 17% to RM97.61 million from RM83.49 million for the previous corresponding period, while revenue increased 12% to RM451.61 million, from RM402.91 million previously.

The group’s unbilled sales stood at RM1.4 billion as at Sept 30, 2022, providing earnings visibility over the next 12 to 15 months.

In the short term, Matrix Concepts said it is in the final stage of a foreign labour recruitment process, and expects to fulfil the labour requirement at its construction sites by the end of the current calendar year. 

“With the expected arrival of the new labour intake, the group is positive on swiftly converting the growing unbilled sales into revenue, which has now exceeded RM1.4 billion from RM1.1 billion last year,” it said.

Going forward, Matrix Concepts expects to continue recording a healthy demand trend, particularly those within the RM600,000 price range, with growing inclination for Klang Valley residents to relocate outside of the city centre, made easier by remote and flexible working arrangements.

Shares in Matrix Concepts were trading three sen or 2.1% higher at RM1.46 per share before the noon market break, valuing the property developer at RM1.83 billion.