[%TEAT%] 
Research by PIB
Neutral – TP of MYR 1.80

“Adding 1000-acre Seremban Landbank” 

Matrix Concepts Holdings (MCH) announced that its subsidiary Megah Sedaya Sdn Bhd has inked a land development agreement with NS Corp for a 1,000-acre land in the (Malaysia Vision City) MVV 2.0 development corridor. NS Corp, we understand, will grant development rights (DRA) to Megah Sedaya, a special purpose vehicle that shall act as the master developer of the new land, for RM435.6m or about RM10psf. Concurrently, MCH and NS Corp also signed a strategic joint venture agreement, which gives 85% equity of the project to MCH and the remaining 15% to NS Corp. The new landbank is located adjacent to the recently-acquired land (measuring 1,382 acres). Combined, these said plots of land are estimated to have a gross development value (GDV) of RM12bn. The purchase is expected to increase its net gearing from 0.1x to 0.3x and to be completed in 18 months plus 4.5 months calculated from the execution of the DRA. As such, we keep our earnings and maintain our Neutral call with book-value based target price (TP) of RM1.80. That said, the stock is currently offering attractive dividend yield of about 5.6%

Analyst(s):
Tan Siang Hing
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$KLSE-MATRIX 
Research by PIB
Neutral – TP of MYR 1.80

“Adding 1000-acre Seremban Landbank” 

Matrix Concepts Holdings (MCH) announced that its subsidiary Megah Sedaya Sdn Bhd has inked a land development agreement with NS Corp for a 1,000-acre land in the (Malaysia Vision City) MVV 2.0 development corridor. NS Corp, we understand, will grant development rights (DRA) to Megah Sedaya, a special purpose vehicle that shall act as the master developer of the new land, for RM435.6m or about RM10psf. Concurrently, MCH and NS Corp also signed a strategic joint venture agreement, which gives 85% equity of the project to MCH and the remaining 15% to NS Corp. The new landbank is located adjacent to the recently-acquired land (measuring 1,382 acres). Combined, these said plots of land are estimated to have a gross development value (GDV) of RM12bn. The purchase is expected to increase its net gearing from 0.1x to 0.3x and to be completed in 18 months plus 4.5 months calculated from the execution of the DRA. As such, we keep our earnings and maintain our Neutral call with book-value based target price (TP) of RM1.80. That said, the stock is currently offering attractive dividend yield of about 5.6%

Analyst(s):
Tan Siang Hing
research@publicinvestbank.com.my

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)