SEREMBAN-CENTRED property developer Matrix Concepts Holdings Bhd has received a ‘Buy’ call from a local research house with a 52-week target price (TP) of RM1.80. The stock was trading at RM1.50 as at 2pm today (Sept 4).
In an initiation report by MIDF Amanah Investment Bank Bhd (MIDF Research), the counter was viewed positively on five counts, including its status as an established township developer in Seremban that focuses on affordable housing.
The other factors were a good track record of dividend payout, better earnings prospects from financial year 2024 (FY24) onwards, near-term catalyst from Indonesia project and landbanking in Labu, Negri Sembilan, and a healthy balance sheet.
“Matrix Concepts has been rewarding shareholders by dishing out dividends consistently since its listing. Matrix Concepts has a dividend policy of paying out not less than 50% of earnings. We estimate Matrix Concepts to pay a dividend of 9.5 sen per share in FY24, which translates into dividend yield of 6.4%,” according to the report.
The company, founded by Datuk Seri Lee Tian Hock (its current group executive deputy chairman), is chaired by Datuk Mohamad Haslah Mohamad Amin.
The company was incorporated in 1996 and was listed on the Main Board of Bursa Malaysia in May 2013. Its principal business activities focus on four main pillars: Property development, construction, education and hospitality. Property development division is the main earnings contributor, contributing to 96% of revenue in FY23.
At this juncture, Matrix Concepts is expanding its landbanking when entered into sale and purchase agreement for acquisition of 1,382 acres (559.28ha) of land within the Malaysia Vision Valley (MVV) corridor.
The company also has international project exposure in Australia and Indonesia.
Matrix Concepts launched its third Australian project, M333 St Kilda in Melbourne, after its earlier Aussie projects, which included M Carnegie and M Greenvale launched in 2016 and 2019, respectively.
It has also ventured in Indonesia through the development of Menara Syariah, which is located in Islamic Financial District at Pantai Indah Kapuk 2.
On the education front, it has Matrix Global Schools, which comprise of Matrix Private School, Matrix International School, and Matrix International Preschool located in its campus in Bandar Sri Sendayan, Negri Sembilan.
As of June 2023, Matrix Global Schools, with 670 students, is still running in the red. — TMR / pic source: mchb.com.my