Matrix Concepts Holdings (MCH) ended its financial year with a net profit of  RM56.6m (-7.4% YoY, +4.0% QoQ) in 4QFY23, which came in largely within our estimate but below consensus. For FY23, Group net profit of RM208.5m  (+1.7% YoY) constituted c.100% and c.94% of our and consensus full year estimates. MCH sold RM202m in 4QFY23, bringing YTD Group pre-sales to  meet its FY23 sales target of RM1.2bn. Average take-up rate for its projects is about 88.6%. Unbilled sales as at 4QFY23 stood at RM1.4bn, down slightly  from RM1.5bn in 3QFY23. It has, in the pipeline, projects worth RM1.7bn (as  compared to RM1.28bn launched in FY23) to be launched in FY24, with a sales target of RM1.36bn (vis-à-vis RM1.2bn in FY23). All told, we maintain our Outperform call, and a book-value based target price (TP) of RM1.80.

• FY23 revenue rose 25.2% YoY to RM1.12bn, mainly due to increase in contribution from the Group’s property development division as labour shortage issues eased during the financial year. Again, Sendayan  Developments remains the Group’s most significant revenue contributor  at about 76% of total Group revenue (+10.6% YoY). The remaining revenue was contributed by the Group’s Kluang township, Bandar Seri  Impian and also ‘The Chambers’ condominium in Kuala Lumpur.

• FY24 sales target of RM1.36bn, or about +13% YoY from its FY23 pre-sales, underpinned by pipeline launches worth RM1.7bn. It is launching  projects worth RM1.2bn from its flagship township, Sendayan Developments and is also looking to unveil its serviced apartments project in Cheras (Levia Residences) that has estimated gross  development value (GDV) of RM532m in 3QFY24. Meanwhile, the  Group’s Indonesian development, Menara Syariah in Pantai Indah Kapuk  2, Jakarta, Indonesia, is targeted for completion in 3QFY24. Elsewhere,  MCH also has 2,158 acres of landbank with estimated GDV in excess of  RM15bn.

Source: PublicInvest Research - 25 May 2023