Matrix Concepts Holdings Berhad

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
Research Report by RHB

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
Research Report by PBIV

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
Research Report by HLIB

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
Research Report by APEX

KUALA LUMPUR: Matrix Concepts Holdings Bhd has secured a spot in the Top 10 list of the Malaysia Developer Awards (MDA) 2024.

© New Straits Times Press (M) Bhd

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
Research by RHB
Buy - TP RM2.15

"Temporary Hiccup In Earnings; BUY"

Maintain BUY and MYR2.15 TP, 14% upside with c.6% FY24F (Mar) yield. Matrix Concepts’ 1QFY25 results are slightly below estimates, mainly due to the timing of billings and, hence, revenue recognition. As its property sales and unbilled sales remain healthy, we expect earnings to pick up in the coming quarters. MCH is on track to meet its FY25 sales target of MYR1.3bn, as 1QFY25 property sales amounted to MYR321.4m. Long-term growth will be driven by developing/selling 2,382 acres of land in Malaysian Vision Valley (MVV 2.0), entrenching the company’s presence in the Sendayan area.

Analyst:
Loong Kok Wen, CFA
loong.kok.wen@rhbgroup.com

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
Research by Public
Neutral - TP RM1.80

"No Surprises"

Matrix Concepts Holdings’ (MCH) 1QFY25 net profit came in at RM60.7m (-6.1% YoY, +0.1% QoQ), which is within our and consensus
expectations at about 24% and 23% of respective full year estimates. The slower start to the new financial year is attributed to lower revenue contribution from the property development segment, as revenue recognition from its flagship Sendayan Developments reduced by 16.6% YoY to RM250.3m. The Group’s sales momentum remained good, with pre-sales secured amounting to RM321.4m (or 25% of FY25 sales target of RM1.3bn), and with unbilled sales at RM1.59bn, providing earnings visibility for the next 15-18 months. All told, no change to our earnings estimates. Maintain Neutral with target price (TP) unchanged at RM1.80. That said, the stock is currently still offering an attractive dividend yield of about 5%.

Analyst:
Tan Siang Hing
research@publicinvestbank.com.my

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
Research by MIDF
Buy - TP RM2.22

"Robust New Sales"

• 1QFY25 earnings within expectations
• Lower earnings due to high base in 1QFY24
• Robust new sales
• Earnings forecast maintained
• Maintain BUY with an unchanged TP of RM2.22

Analyst:
Jessica Low Jze Tieng
jessica.low@midf.com.my

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
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)
Research by Apex
Buy - TP RM2.07

"Earnings impacted by weaker BSS contribution"

• MATRIX’s 1QFY25 core net profit at RM60.7 (-6.1% yoy and flattish qoq) came below expectations, accounting to only 18.6% and 22.8% of ours and consensus forecast respectively, impacted by timing of launches of BSS township projects.
• Tweaked our FY25-26 earnings forecast lower by -24.5%/-19.9%, adjusting to weaker-than-expected contribution from BSS township.
• Maintained BUY recommendation on MATRIX, but with lower target price of RM2.07 (based discount rate of 20% to our RNAV) post earnings revision.

Analyst:
Team Coverage
research.dept@apexsecurities.com.my

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD) -Bold Moves in MVV 2.0

Strategic Land Acquisitions: The focus on industrial development in MVV 2.0 , given the high demand for industrial properties in Malaysia. This diversification beyond residential projects can provide a stable revenue stream and reduce reliance on any single segment.

Resilience of Bandar Sri Sendayan: The continued success of Bandar Sri Sendayan, particularly in affordable housing, is a strong indicator of the company's ability to meet market demand. The affordability of these properties makes them attractive in a market where there is a growing need for reasonably priced housing options.

Potential in Indonesian Market: The Menara Syariah project in Indonesia adds an international dimension to Matrix Concepts’ portfolio. Successfully monetizing this project could provide significant upside, especially if the company follows through with its plan to reward shareholders through dividends.

Matrix Concepts Holdings Berhad shows strong growth potential with strategic land acquisitions in MVV 2.0, tapping into Malaysia's high demand for industrial properties. The success of affordable housing in Bandar Sri Sendayan highlights their ability to meet market needs. Additionally, the Menara Syariah project in Indonesia offers international expansion opportunities, potentially boosting revenue and rewarding shareholders with dividends.

$HCK / 7105 (HCK CAPITAL GROUP BERHAD) $RADIUM / 5313 (RADIUM DEVELOPMENT BERHAD) $MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD) $SIMEPROP / 5288 (SIME DARBY PROPERTY BERHAD) $MAHSING / 8583 (MAH SING GROUP BERHAD)

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
Research by MIDF
BUY – TP RM2.22

" MVV Land the Next Growth Driver”

• Meeting with management of Matrix Concepts
• MVV land the next growth driver
• Bandar Sri Sendayan stays resilient
• Earnings forecast revised upwards
• Maintain BUY with a revised TP of RM2.22

Analyst:
Jessica Low Jze Tieng
jessica.low@midf.com.my

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

APEX Securities TOP PICKS 2ND HALF 2024...

Turning more selective and defensive.
Moving into 2H24, we advocate a more defensive stance to focus onto laggard plays. We continue to favour the construction sector in anticipation of more aggressive rollout in private and public infrastructure jobs as billings shift into higher gear. Meanwhile, we also like the property sector that is well positioned to capitalise onto development key mega transport projects that may uplift demand for property projects in selected vicinities. The technology sector remains in focus in view of the recovery in world semiconductor sales, leveraging onto the rise in AI industry, could computing and Internet of Things (IoT). We favour the healthcare sector, particularly gloves players which saw fortunes turning around with majority of the players returning to the black, while healthcare services providers and equipment manufacturers stands to benefit from the larger allocation under recent and upcoming Budgets.

$QES / 0196 (QES GROUP BERHAD) $MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD) $AME / 5293 (AME ELITE CONSORTIUM BERHAD) $TASCO / 5140 (TASCO BERHAD) $SLVEST / 0215 (SOLARVEST HOLDINGS BERHAD)

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
Research by APEX
Buy – TP of MYR 2.14

“Esteemed Urban Development Seremban Player”

We are optimistic over Matrix's earnings growth prospect as the Group exhibits a clear growth strategy, in evident from ongoing landbank acquisition efforts to ensure sustainable development over the next two decades. Additionally, the expansion beyond Malaysia suggests strong management confidence and a diversified revenue stream, further bolstering our positive outlook.

Analyst(s):
Team Coverage
research.dept@apexsecurities.com.my

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Annual Audited Accounts - 31 Mar 2024

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Notice of Interest Sub. S-hldr (Section 137 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

KUALA LUMPUR: Matrix Concepts Holdings Bhd’s acquisition of lands in Mukim Labu, Negeri Sembilan, is poised to provide longer visibility of earnings ahead.

© New Straits Times Press (M) Bhd

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
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)

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
Research by RHB
Buy – TP of MYR 2.15

“Expanding Presence In MVV Further; BUY”

Maintain BUY, with new MYR2.15 TP from MYR2.02, 19% upside and c.6% FY25F (Mar) yield. We are upbeat with Matrix Concepts’ new land acquisition. Upon the completion of this transaction, it will have a total of 2,382 acres in Malaysia Vision Valley 2.0 (MVV 2.0), with a potential GDV of MYR12bn. Management has also indicated that about 1,000 acres will be allocated for industrial development, which suits the current market trend given the robust demand from local and foreign manufacturers, logistics as well as data centre players.

Analyst(s):
Loong Kok Wen CFA
loong.kok.wen@rhbgroup.com

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
Research by MIDF
Buy – TP of MYR 2.05

“Strengthening Presence in Labu”

Development rights for 1000 acres land in MVV2.0. Matrix Concepts announced that its wholly owned subsidiary, Megah Sedaya Sdn Bhd (MSSB) and NS Corp have entered into Development Rights Agreement to jointly develop 1,000 acres of freehold land in Malaysia Vision Valley 2.0 (MVV 2.0), Labu. The 1,000 acres of land shall acquire by NS Corp from Sime Darby Berhad while MSSB shall pay for the Development Rights by way of the settlement of the purchase price amounting RM435.6m. Matrix Concepts will hold 85% stake in the JV that undertake development of the 1,000 acres of land.

Analyst(s):
Jessica Low Jze Tieng
jessica.low@midf.com.my

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
Research by APEX
Buy – TP of MYR 2.14

“Beefing up Malaysia Vision Valley 2.0”

Landbank replenishment. Matrix’s wholly owned subsidiary, MCHBD Development Sdn Bhd and NS Corporation through a joint venture vehicle namely Megah Sedaya Sdn Bhd is purchasing four plots of freehold agricultural lands located in Mukim Labu, Daerah Seremban, Negeri Sembilan for RM435.0m from Kumpulan Sime Darby Bhd.

Analyst(s):
Team Coverage
research.dept@apexsecurities.com.my

$MATRIX / 5236 (MATRIX CONCEPTS HOLDINGS BERHAD)
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

SEREMBAN: Matrix Concepts Holdings Bhd, via its subsidiary Megah Sedaya Sdn Bhd, has entered into a new land development agreement with NS Corporation (NS Corp) for a 404.6 hectares prime land in the Malaysian Vision Valley 2.0 (MVV2.0) development corridor.

© New Straits Times Press (M) Bhd

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS1) PROPOSED STRATEGIC JOINT VENTURE AGREEMENT BETWEEN MCHB DEVELOPMENT (NS) SDN BHD, MEGAH SEDAYA SDN BHD AND NS CORPORATION

2) PROPOSED DEVELOPMENT RIGHTS AGREEMENT BETWEEN NS CORPORATION AND MEGAH SEDAYA SDN BHD FOR THE DEVELOPMENT OF FREEHOLD AGRICULTURE LAND LOCATED IN MUKIM LABU, DAERAH SEREMBAN, NEGERI SEMBILAN