Matrix Concepts Holdings’ (MCH) 3QFY23 net profit came in at RM54.4m (- 10.1% YoY, +7.5% QoQ), in line with our expectations but below consensus. YTD, Group net profit of RM152.0m (+5.6% YoY) constituted c.73% and c.66% of our and consensus full year estimates. Pre-sales secured YTD amounted to RM1bn (or 83% of FY23 sales target of RM1.2bn), with unbilled sales at RM1.5bn. YTD, the Group launched c.RM934m in new projects with average take-up rate of 92.7%. All told, we maintain our Outperform call, and a bookvalued based target price (TP) of RM1.80.

• 3QFY23 revenue rose 56.1% YoY to RM363.8m, mainly due to the recognition of its recent project completions, namely The Chambers in Klang Valley and M. Greenvale in Melbourne, Australia. Meanwhile, revenue from the Group’s flagship Sendayan Developments amounted to RM219.3m (+9.3% YoY) while the Group’s Kluang township, Bandar Seri Impian, saw its revenue jump 55% YoY to RM14.8m. Group gross profit improved 10.7% YoY to RM150.7m in 3QFY23 due to lower gross margin recorded (41.4% in 3QFY22 from 58.4% a year ago).

• Sold RM340m in 3QFY23, bringing YTD pre-sales to c.RM1bn. Group sales, we understand, continued to be driven by healthy demand from its new launches at Sendayan Developments. Sendayan Developments is again its top sales generator, with c.RM900m new sales secured YTD. Unbilled sales as at 3QFY23 stands at RM1.5bn, ensuring earnings visibility over the next 15-18 months. Elsewhere, MCH also has c. 2,158 acres of landbank with estimated GDV in excess of RM15bn.

Source: PublicInvest Research - 1 Mar 2023