Matrix Concepts looks to double GDV by year-end

KUALA LUMPUR: Matrix Concepts Holdings Bhd, which reported a 41.3% jump in net profit for the second quarter ended June 30, 2014 (2QFY14), plans to double its gross development value (GDV) to at least RM800 million by the end of this year from RM409 million as at June 30.

“As at the end of June 2014, we had RM1.068 billion ongoing development projects in Negeri Sembilan and Johor. Unbilled sales amounted to RM434.7 million, which will eventually be recognised till 2016,” chairman Datuk Mohamad Haslah Mohamad Amin said in a statement yesterday.

The Seremban-based property developer saw its net profit rising to RM42.4 million 2QFY14, from RM30 million in the corresponding quarter a year ago, underpinned by strong demand for its new launches of affordable housing and industrial properties.

Revenue increased 11.1% to RM163.7 million, from RM147.3 million in 2QFY13, on higher sales of residential and industrial properties.

The group also declared a second interim dividend of 3.75 sen per share for FY14 ending Dec 31, payable on Oct 16.

“Despite reports of a cooling property market nationwide, the strong take-up at our newly launched projects in 2QFY14 proves that demand for affordable properties remains intact,” said Mohamad Haslah.

Matrix Concepts’ two newly launched projects are Hijayu 3A (Phases 1 & 2) at Bandar Sri Sendayan in Seremban, and 26 units of double-storey shop offices in Taman Seri Impian, Kluang, Johor.

For the six months ended June 30 (6MFY14), its net profit rose 6.5% to RM81 million, from RM76.03 million a year ago, while revenue declined 34.5% to RM298.45 million from RM302.91 million in 6MFY13.

The group remains optimistic about the growth of the Seremban property sector given the sustainable catalysts in the long run.

“We are confident that the profitability of the group will be sustained through the launch of new projects as well as the continuous sales at our current development projects,” Mohamad Haslah said.

Describing Seremban as a satellite city within the Greater Klang Valley, Haslah said the rapid developments and growing employment opportunities there would have a positive impact on the demand for homes.

“In this respect, the Sendayan TechValley in Bandar Sri Sendayan is quickly emerging as a formidable hub for job creation in the state. To date, four high-tech international manufacturing factories have commenced operations, namely Hino Motors Manufacturing, Akashi Kikai Industry and Kayaku Safety Systems from Japan, and Messier Bugatti-Dowty from France,” he added.


This article first appeared in The Edge Financial Daily, on August 20, 2014.