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Matrix 3Q net profit rises to five-year high, declares three sen dividend

KUALA LUMPUR (Feb 25): Matrix Concepts Holdings Bhd's net profit rose to a five-year high of RM75.34 million in the third quarter ended Dec 31, 2020 (3QFY21), 15% higher than RM65.33 million a year ago.

In a filing to Bursa Malaysia today, the property developer attributed the increased net profit to reduced administrative and general expenses, higher share of results from the group’s joint venture company in Indonesia, and adjustment in tax provision.

Earnings per share, accordingly, leapt to 9.03 sen, from 7.94 sen in 3QFY20.

Meanwhile, the group’s quarterly revenue also rose by 13.1% to RM315.41 million, from RM278.96 million a year ago.

Matrix explained that the revenue growth represents a recovery in performance to surpass pre-pandemic levels, and mainly attributed it to the group’s increased property development activity, and expedited construction progress to regain the temporary loss of productivity in development schedule caused by the Movement Control Order (MCO) period from March to May 2020.

The group has also declared a dividend of three sen per share, which remains unchanged compared to a year ago. It will be paid on April 8, 2021. 

For the financial year ending March 31, 2021 (FY21), the group declared total dividends of eight sen versus nine sen a year earlier. 

For the nine months ended Dec 31, 2020, Matrix posted a net profit of RM181.46 million, up 1.5% compared with RM178.72 million a year ago, despite revenue decreasing by 8.7% to RM739.44 million from RM810.19 million.

On prospects, the group noted that its implementation of comprehensive measures to adapt to the “new normal” in the operating environment since the first MCO period in March 2020 has enabled it to beat its pre-pandemic profit track record, supported by increased contribution from the property development segment, and lower sales and marketing expenses with more online engagement.

Moving forward, Matrix will remain focused on improving its township developments of Bandar Sri Sendayan, Ara Sendayan and Tiara Sendayan in Negeri Sembilan, and Bandar Seri Impian in Kluang, Johor.

“This includes improvement to amenities and infrastructure to support better and more vibrant community living, as well as landbanking efforts to expand our future pipeline,” it said.

In order to widen its geographical footprint, the group has embarked on a steady diversification of its revenue stream beyond Negeri Sembilan and Johor by expanding its domestic project portfolio to include developments in Klang Valley as well as internationally, in Melbourne, Australia and Jakarta, Indonesia.

“Total gross development value (GDV) for ongoing developments in Malaysia stood at RM2.41 billion while international projects amounted to RM1.04 billion as at Dec 31, 2020,” said Matrix.

Moreover, Matrix said it will continue to adopt a cautiously optimistic outlook, backed by encouraging demand for its ongoing developments, the reimplementation of Home Ownership Campaign until May 31, 2021 by the Housing and Local Government Ministry, and lower interest rates.

According to Matrix, it launched RM773.2 million worth of new projects in the nine months ended Dec 31, 2020, of which 51.8% was sold.

For the remaining three months of FY21, it has lined up an additional RM250 million worth of new launches with total launches for FY21 amounting to RM1 billion, sustaining the group’s profitability until FY23, it said.

At the time of writing, shares of Matrix were up two sen or 1.14% at RM1.77, with a market capitalisation of RM1.48 billion.

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