Matrix Concepts to benefit from large land bank

PETALING JAYA: Most analysts are bullish on property developer Matrix Concepts Holdings Bhd’s long-term prospects, underpinned by its huge land bank and its upcoming projects.

Apex Securities Research, which is maintaining its “buy” call on the stock, said moving forward, Matrix Concepts would be launching several projects that carry a total gross development value (GDV) of RM1.65bil for financial year 2025 (FY25).

In the long term, the company has a total land bank of 2,032 acres with a total GDV of RM11.7bil to sustain operations over the next seven to 10 years.

“We expect Matrix Concepts to chart greater heights, premised on billings from ongoing property projects and new launches in the pipeline, improving contributions from its education segment that could return to the black towards end-FY25, and rise in the number of beds to boost its healthcare segment.

“No changes are made to our earnings forecast, as the results came within expectations. We are maintaining our ‘buy’ recommendation on the company with a target price of RM2.14,” the research house added.

MIDF Research said it remains positive on Matrix Concepts as its long-term earnings outlook will be underpinned by the stable sales from projects in Bandar Sri Sendayan, Negri Sembilan. Its land bank expansion in Labu, Negri Sembilan will also drive earnings growth.

Meanwhile, the research house said the dividend yield of the company is attractive at 5.6%, while its balance sheet is healthy considering its net cash position. Hence, the research house has maintained its “buy” call on Matrix Concepts.

For its financial year 2023 ended March 31, 2024, Matrix Concepts recorded a net profit of RM246.47mil, up from RM207.22mil in the previous year.