Matrix Concepts’ 1Q profit slips despite higher revenue

PETALING JAYA (Aug 24): Matrix Concepts Holdings Bhd’s profit attributable to shareholders declined 4.4% to RM60.19 million for the first quarter ended June 30, 2026 (1QFY2027), from RM62.94 million a year earlier, despite an 11% increase in revenue.

Revenue rose to RM315.58 million from RM284.28 million, while profit before tax fell 2.6% to RM80.79 million from RM82.98 million, according to the property developer’s unaudited quarterly results filed with Bursa Malaysia on Monday (Aug 24). Earnings per share eased to 3.21 sen from 3.35 sen.

Matrix Concepts said the weaker earnings reflected lower other income following the recognition of RM6.1 million in one-off other income in the corresponding quarter, higher selling and marketing expenses and a lower gross profit margin.

These were partly offset by stronger contributions from MVV City, the group’s Klang Valley developments and Horizon, as well as improved performance from its education segment.

Gross profit rose 2.5% to RM128.55 million, although gross profit margin narrowed to 40.7% from 44.1%, mainly due to changes in sales mix.

Property development remains main contributor

Property development remained the group’s core revenue driver, contributing RM295.97 million, or 93.8% of total revenue.

Sendayan Developments in Negeri Sembilan remained the largest contributor at RM176.7 million, or 56% of group revenue, while Bandar Seri Impian contributed RM21.8 million, up 42.2% from RM15.3 million a year earlier.

MVV City generated RM21.3 million in revenue from industrial property sales, while Levia Residence in Kuala Lumpur contributed RM52.7 million, up 98% from RM26.6 million in 1QFY2026.

The group also recognised RM5.2 million in revenue from its completed M333 St Kilda development in Australia, while the Horizon group of companies, acquired in August 2025, contributed RM18.3 million during the quarter.

Revenue from the education segment rose 28.6%, supported by higher student enrolment, although revenue from the hospitality and healthcare segments declined 8% and 19.6% respectively.

RM1.5b unbilled sales

Matrix Concepts recorded RM416.7 million in new property sales during the quarter, with Sendayan Developments contributing RM235.3 million, or 56.5% of the total.

Unbilled sales stood at RM1.5 billion as at June 30, which the group said would provide earnings visibility over the next 15 to 18 months.

Looking ahead, the group said it remains optimistic on its prospects, supported by demand for its township developments, its unbilled sales and expansion into new markets.

It expects MVV City, a 2,382-acre integrated township jointly developed with the Negeri Sembilan state government, to become a significant long-term earnings contributor. The project has an estimated gross development value (GDV) of RM15 billion over 12 years, comprising about 1,000 acres of industrial land, 15,000 residential units and a 174-acre commercial precinct.

Following its acquisition of Horizon, Matrix Concepts said it has strengthened its presence in the Sepang and Banting growth corridors, with planned launches exceeding RM800 million over the next two years.

The group also has upcoming residential developments in Damansara and Puchong with estimated GDVs of RM520 million and RM610 million respectively. It said it expects markets outside Negeri Sembilan to contribute more than 30% of group revenue over the medium term.

Matrix Concepts declared a first interim single-tier dividend of 1.4 sen per share for FY2027, payable on Oct 8 to shareholders whose names appear in the record of depositors on Sept 18.

RM1.11b financial assistance

Separately, Matrix Concepts disclosed aggregate financial assistance of RM1.11 billion as at June 30, mainly comprising RM1.08 billion in corporate guarantees issued in favour of financial institutions for banking facilities utilised by its subsidiaries.

The balance comprised RM29.76 million in advances under a management agreement and a joint venture cum shareholders’ agreement, as well as a RM2.57 million corporate guarantee in favour of suppliers for goods and services utilised by a wholly owned subsidiary.

The two largest guarantees were RM416.28 million in respect of N9 Matrix Development Sdn Bhd and RM392 million in respect of Megah Sedaya Sdn Bhd.

The company said the financial assistance would not have a material impact on the group’s net assets, earnings per share, gearing, share capital or substantial shareholders’ shareholdings for the financial period ended June 30.

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