Matrix Concepts expects to return to pre-Covid levels

by LYDIA NATHAN / pic by TMR FILE

MATRIX Concepts Holdings Bhd expects its business to recover to pre-pandemic levels backed by positive market demand and government incentives aimed at supporting the housing market.

The property developer registered a 27.8% year-on-year (YoY) increase in net profit for its second quarter ended Sept 30, 2020 (2Q21), to RM75.06 million from RM58.74 million the year prior, according to an exchange filing yesterday.

The improved performance was largely contributed by the property development segment which saw favourable product mix. This was further boosted by lower selling and marketing expenses.

Turnover for the quarter, however, fell 7.3% YoY to RM262.01 million compared to RM282.73 million attributed to disruptions arising from the reimplementation of the Recovery Movement Control Order since June 10.

The government’s restrictions on movement resulted in temporary setbacks to construction activities for its current projects and delays involving its newer projects.

The group had focused on expediting construction activities to regain lost productivity during the quarter, which allowed for a revenue contribution of RM254.3 million from the property development segment, as it restored performance close to pre-pandemic levels.

“Despite the cautious sentiment of the property industry, the group’s commendable first half of 2021 (1H21) performance represents a positive signal towards a return to pre-pandemic operations level and drives the optimism towards sustaining positive uptake of our products for the financial year ended 2021.

“We adopt a cautiously optimistic outlook, backed by encouraging demand recorded for our ongoing developments, the reimplementation of Home Ownership Campaign by the Housing and Local Government Ministry and Bank Negara Malaysia’s announcement on reducing the Overnight Policy Rate by 125 basis points to date since January 2020,” the company stated in its filing.

The group launched three new development projects with a combined gross development value (GDV) of RM353.2 million during the six months ended Sept 30, 2020 (1H21), with an 80.7% take-up rate so far.

Unbilled sales stand at RM1.1 billion as at Sept 30, 2020, and will provide earnings visibility over the next 15 months, the developer noted.

On a year-to-date basis, Matrix Concepts’ net profit was 6.4% lower YoY at RM106.12 million as revenue fell 20% YoY to RM424.04 million.

Moving forward, the company stated it will focus on its township developments of Sendayan Development, comprising Bandar Sri Sendayan, Ara Sendayan and Tiara Sendayan in Negri Sembilan, and Bandar Seri Impian in Kluang, Johor.

The group said it is aiming to enhance its long-term sustainability and brand visibility by expanding its domestic project portfolio to include developments in the Klang Valley and internationally, in Melbourne, Australia, and Jakarta, Indonesia.

These efforts have widened Matrix Concepts’ geographical footprint to capture more growth opportunities.

Total GDV for ongoing developments in Malaysia stood at RM2.35 billion, while international projects amounted to RM1.08 billion as at Sept 30, 2020.

The second development in Australia, M Greenvale in Melbourne, featuring residential lots situated on a 9.7-acre (3.93ha) land with GDV of RM79 million, has recorded take-up of 62% as at Sept 30, 2020.

The group also announced in December 2019 the groundbreaking of the Islamic Financial Towers development in Pantai Indah Kapuk 2 in Jakarta, Indonesia.

Matrix Concepts announced a single-tier second interim dividend of three sen per share.