Matrix Concepts ends FY2023 on a positive note despite weak 4Q earnings, declares 2.25 sen dividend

KUALA LUMPUR (May 24): Property developer Matrix Concepts Holdings Bhd saw its net profit slip 7.4% to RM56.56 million in its fourth financial quarter ended March 31, 2023 (4QFY2023), from RM61.08 million a year earlier, due to the recognition of lower margin contributions from its Klang Valley development, as well as reduced revenue contribution from its industrial properties.

As a result, earnings per share came in lower at 4.52 sen for 4QFY2023, compared with 4.88 sen for 4QFY2022.

Revenue for the quarter, however, rose 20.5% to RM302.21 million, from RM250.81 million in 4QFY2022, driven by a 20.4% year-on-year (y-o-y) increase in contribution from the group’s property development division to RM291.7 million in the current quarter.

"This is in line with the improving labour shortage issue, with the steady stream of new recruitment since late 2022," it said in a bourse filing on Wednesday (May 24).

Matrix Concepts also noted that it had retained its sales momentum by securing RM202.2 million worth of new property sales for the quarter, and achieving its sales target of RM1.2 billion for the full financial year ended March 31, 2023 (FY2023).

The group’s unbilled sales stood at RM1.4 billion as at end-March, which will provide earnings visibility over the next 15 to 18 months.

Matrix Concepts also declared a fourth interim dividend of 2.25 sen per share for FY2023, payable on July 6. This brings total dividend payout for FY2023 to 8.25 sen, totalling RM103.2 million, and equivalent to 50.6% of FY2023 net profit.

In the filing, Matrix Concepts pointed out that its Sendayan developments in Negeri Sembilan remain its most significant revenue contributor, amounting to RM249.8 million in 4QFY2023, up 18.3% year-on-year (y-o-y). Its Bandar Seri Impian township in Kluang, Johor, also saw revenue contribution rise by 20.9% y-o-y to RM21.9 million in 4QFY2023.

"As for the group’s first Klang Valley development called The Chambers, and its Australian development known as M Greenvale in Melbourne, revenue contribution in 4QFY2023 was RM13.1 million and RM6.9 million respectively," it added.

However, the group’s quarterly revenue improvement was offset by lower revenue recognised from its industrial properties, which saw a 87% y-o-y decline to RM8.6 million in 4QFY2023.

For the full year (FY2023), Matrix Concepts managed to post a marginal 1.6% improvement in its net profit to RM208.54 million from RM205.2 million in the previous year, while revenue grew 25.2% to RM1.12 billion, from RM892.4 million in FY2022.

Moving forward, Matrix Concepts expects to continue recording a healthy demand trend, with growing inclination for Klang Valley residents to relocate outside of the city centre, made easier by well-developed road networks and connectivity, as well as remote and flexible working arrangements.

The group also intends to capitalise on the strong demand, driven by the strong value proposition of its residential properties, particularly those within the RM600,000 price range.

"With the recent recruitments of foreign labour fulfilling the manpower requirements at its construction site, the group is positive on swiftly returning to optimum construction activities level and converting the sizeable unbilled sales to revenue. With a proven track record in ramping up construction activities, the group is cautiously optimistic on the recovery of its revenue recognition in due time," it added.

"For FY2024, we are cautiously optimistic of our outlook and are planning more property launches to capitalise on improving market conditions. We remain prudent in navigating market headwinds, but expect a resilient performance in FY2024 as we expedite construction works for our projects with an increased workforce," said Matrix Concepts chairman Datuk Mohamad Haslah Mohamad Amin in a separate statement.

Matrix Concepts founder and group executive deputy chairman Datuk Seri Lee Tian Hock (right) with Mohamad Haslah. (Photo: credit: Matrixs Concepts Holdings Bhd)

On the local front, Matrix Concepts said it will remain dedicated to enhancing its township developments of Sendayan developments — comprising Bandar Sri Sendayan, Ara Sendayan and Tiara Sendayan — and Bandar Seri Impian.

At the same time, the acquisition of a 1,382-acre land within the Malaysian Vision Valley corridor in Negeri Sembilan on Aug 24, 2022, will see it launching its first product there in FY2026.

Abroad, the group will focus on the M333 St Kilda mixed development in Melbourne, which was launched in May last year, with an estimated gross development value of A$80 million. The development is its largest in Australia to date.

In Indonesia, its development called Menara Syariah in Pantai Indah Kapuk 2, Jakarta — which is being undertaken via a joint venture with Indonesian conglomerates Agung Sedayu Group and Salim Group — is targeted for completion in 3QFY2024.

At noon break on Wednesday, Matrix Concepts shares closed up one sen or 0.7% at RM1.43, with 1.14 million shares changing hands. Its market capitalisation stood at RM1.79 billion.