[%IcgH%] 
Research by HLIB
Hold – TP of MYR 1.87

“Land acquisition for extension of MVV” 

Matrix announced on 19 June the acquisition of 1k acres in Mukim Labu, Negeri Sembilan for RM435.6m (RM10 psf) through its 85%-owned Megah Sedaya Sdn Bhd. This new acquisition is adjacent to the 1.38k acres of land that it acquired in Aug-22. Together, both lands will form an enlarged 2.38k acres development with an estimated GDV of RM12bn and a development period of 12 years, starting in FY26. The current land acquisition price is 30.9% higher than the previous land acquisition at RM7.64 psf. The total cost for both lands of RM895.6m represents 8.8% of the effective GDV of RM10.2bn, which we deem to be attractive. Postacquisition, net gearing will rise to 31.2% from a net cash position. Maintain forecasts and HOLD rating with an unchanged TP of RM1.87 based on 45% discount to our estimated RNAV of RM3.40.

Analyst(s):
Tan Kai Shuen, CFA
[%mEDc%]

$KLSE-MATRIX 
Research by HLIB
Hold – TP of MYR 1.87

“Land acquisition for extension of MVV” 

Matrix announced on 19 June the acquisition of 1k acres in Mukim Labu, Negeri Sembilan for RM435.6m (RM10 psf) through its 85%-owned Megah Sedaya Sdn Bhd. This new acquisition is adjacent to the 1.38k acres of land that it acquired in Aug-22. Together, both lands will form an enlarged 2.38k acres development with an estimated GDV of RM12bn and a development period of 12 years, starting in FY26. The current land acquisition price is 30.9% higher than the previous land acquisition at RM7.64 psf. The total cost for both lands of RM895.6m represents 8.8% of the effective GDV of RM10.2bn, which we deem to be attractive. Postacquisition, net gearing will rise to 31.2% from a net cash position. Maintain forecasts and HOLD rating with an unchanged TP of RM1.87 based on 45% discount to our estimated RNAV of RM3.40.

Analyst(s):
Tan Kai Shuen, CFA
kstan@hlib.hongleong.com.my

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)