• Matrix Concepts Holdings Berhad (“Matrix”) is principally involved in the Property Development, Construction, Education,  Hospitality, and Healthcare.

• Several factors are expected to contribute to the potential  increase in the company's earnings, including: 1) higher-thanexpected demand for affordably-priced premium homes at  Sendayan Developments, 2) a large number of new launches of  over RM1bn annually.

• Matrix maintains a minimum 40% dividend payout ratio which is  payable on quarterly basis. Over the past 5 years, it paid annual  DPS of 11.5-13.5 sen which translates into 8.0-9.4% dividend yield.

• Matrix is currently trading at Price-to-Book ratio of 0.94x, which is  slightly below its 5-year historical average of 1.01x. Matrix is  indicatively undervalued particularly with its bullish outlook post  COVID-19 full economic reopening.

Company Background

Matrix was established in 1996 and listed on the Main Market of Bursa  Malaysia since 2013. With an integrated spectrum of business activities  across Property Development, Construction, Education, Hospitality,  and Healthcare, the company has extended its presence beyond  Malaysia, with development footprints in Melbourne, Australia and  Jakarta, Indonesia.

Overview – Business and Operations

Matrix’s Sendayan Developments township, which covers over 6,000  acres of land in Negeri Sembilan, is a flagship and award-winning  project known for its affordable-premium landed homes set within a  sustainable, green environment. The development includes first-class  amenities such as Matrix Global Schools, GBI-certified d’Tempat  Country Club, d’Sora Business Boutique Hotel, and a range of public  and social facilities, providing residents with exceptional community  living experience. The company is also the developer of Bandar Sri  Impian, a 900-acre project in Kluang, Johor. Since 2013, Matrix has  extended its reach to Kuala Lumpur City Centre with the construction  of Chambers Kuala Lumpur, a 33-storey condominium project.  Additionally, there are plans in the pipeline for Matrix to expand its  property portfolio in Selangor with upcoming developments in  Puchong, Damansara Perdana, and Cheras.

Global Presence

Matrix has expanded its reach globally by developing premium  residences in other countries. For example, the company recently  launched M333 St Kilda in Melbourne, Australia, in May 2022. This project follows the success of previous developments, M.Carnegie in  2016 and M.Greenvale in 2019. Furthermore, in 2019, the company  entered the Indonesian market through a joint venture with a wellknown local developers to develop the 29-storey Menara Syariah in the  international waterfront township of Pantai Kapuk Indah 2 in Jakarta.

Source: BIMB Securities Research - 1 May 2023