- MIDF said it sees a better earnings outlook for Matrix Concepts in FY2024 and FY2025 as construction progress at project sites normalised.
KUALA LUMPUR (Sept 4): MIDF Research has initiated coverage on Matrix Concepts Holdings Bhd at RM1.52 with a "buy" call and target price (TP) of RM1.81.
In a note on Monday, the research house said it derived the TP of RM1.81 by pegging a 25% discount to revalued net asset value.
“Our positive view on Matrix Concepts are premised on (1) its status as an established township developer in Seremban that focuses on affordable home, (2) good track record of dividend payout, (3) better earnings prospect from FY2024 (financial year 2024) onwards, (4) near-term catalyst from Indonesia project and land banking in Labu, and (5) healthy balance sheet,” it said.
MIDF said it sees a better earnings outlook for Matrix Concepts in FY2024 and FY2025 as construction progress at project sites normalised.
“We estimate earnings of Matrix Concepts to be higher at RM255.5 million (+15.8% y-o-y) for FY2024 and RM280.3 million (+9.7% y-o-y) for FY2025.
“Earnings should also be supported by better new sales outlook. Note that Matrix Concepts targets to achieve new sales of RM1.3 billion in FY2024, which is higher than new sales of RM1.2 billion achieved in FY2023,” it said.
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