[%fSuM%] 
Research by HLIB
Buy - TP RM2.10

"Results within expectations"

Matrix reported 1QFY25 core PATAMI of RM60.7m (+17.1% QoQ, -6.1% YoY). The results were within our and consensus projections, forming 23.7% and 22.8% of full-year forecasts respectively. Post annual report updates, we tweaked our FY25/26 forecasts by +0.3%/2.0% and introduce FY27 forecast at RM297.8m (+10.2% YoY). Upgrade to BUY (from Hold) with a higher TP of RM2.10 (from RM1.87) based on a lower 40% discount (from 45%) to our estimated RNAV of RM3.49. We are turning more positive on Matrix as its recent land acquisition in Negeri Sembilan provides longer earnings visibility and indicates the group steadfast effort in charting its next phase of growth. Additionally, the stock has a generous dividend payout ratio of >50% with a good projected dividend yield of 5.7% for FY25.

Analyst:
Tan Kai Shuen, CFA
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$KLSE-MATRIX 
Research by HLIB
Buy - TP RM2.10

"Results within expectations"

Matrix reported 1QFY25 core PATAMI of RM60.7m (+17.1% QoQ, -6.1% YoY). The results were within our and consensus projections, forming 23.7% and 22.8% of full-year forecasts respectively. Post annual report updates, we tweaked our FY25/26 forecasts by +0.3%/2.0% and introduce FY27 forecast at RM297.8m (+10.2% YoY). Upgrade to BUY (from Hold) with a higher TP of RM2.10 (from RM1.87) based on a lower 40% discount (from 45%) to our estimated RNAV of RM3.49. We are turning more positive on Matrix as its recent land acquisition in Negeri Sembilan provides longer earnings visibility and indicates the group steadfast effort in charting its next phase of growth. Additionally, the stock has a generous dividend payout ratio of >50% with a good projected dividend yield of 5.7% for FY25.

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

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)