Matrix Concepts 2Q net profit gains over 5% on disposal gain, pays 2.75 sen dividend

• The Bandar Sri Sendayan township developer said its profit margin was 21.30%, up from 17.60% in the prior year.

KUALA LUMPUR (Nov 26): Property developer Matrix Concepts Holdings Bhd (KL:MATRIX) said on Tuesday its second-quarter net profit grew 5.29% from a year earlier as gain on disposals more than offset a drop in revenue.

In a filing with Bursa Malaysia on Tuesday, Matrix said that during the quarter under review, it recorded a gain on disposal of property, plant, and equipment, as well as investment property amounting to RM11.5 million.

Net profit for the three months ended Sept 30, 2024 (2QFY2025) was RM67.42 million, compared with RM64.03 million in the same quarter last year, according to an exchange filing. Earnings per share rose 5.39 sen from 5.12 sen in 2QFY2024.

Revenue for the quarter, meanwhile, dropped 10.66% to RM321.04 million from RM359.35 million a year ago, due to lower revenue from the property development segment and lower residential property segment, but was offset by higher contributions from commercial and industrial properties.

The group has declared a second interim dividend of 2.75 sen per share, to be paid on Jan 9 next year. This brings the year-to-date dividend payout to 5.25 sen per share.

The Bandar Sri Sendayan township developer said its profit margin was 21.30%, up from 17.60% in the prior year. The other income segment jumped 215.70% to RM14.20 million, largely from disposal gains of property, plant, and equipment and investment property of RM11.50 million.

Property sales stood at RM341.70 million for the quarter, mainly driven by the Sendayan Developments, which contributed 86.30% or RM294.80 million of total new property sales.

As at end-September, the group’s unbilled sales stood at RM1.3 billion, providing substantial earnings visibility for the next 15-18 months, Matrix said.

“Looking forward, the group is well-positioned for sustained growth, supported by several key factors,” Matrix said, banking on its flagship Sendayan Developments, which continues to attract Klang Valley residents seeking homes outside the city centre.

For the six-month period (1HFY2025), the group’s net profit fell marginally to RM128.11 million versus RM128.63 million, as revenue dropped 13.03% to RM600.76 million from RM690.78 million in 1HFY2024.

“The group remains committed to enhancing the value proposition of its township developments by continually improving amenities and infrastructure to foster vibrant, community-oriented living. It is also actively pursuing land banking efforts to ensure a steady pipeline for future projects," it said.

On its healthcare business, Matrix said its venture with Mawar Medical Centre has already yielded positive results.

"Since the third quarter of FY2024, the healthcare division has provided a steady revenue stream, with plans to increase patient beds over the next 12 months to meet growing demand," it added.

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