RHB sees upside to Matrix Concepts amid healthcare and property expansion

• According to RHB, the current expansion will see Mawar Medical Centre’s bed capacity increasing from 88 to 109 upon completion.

KUALA LUMPUR (Feb 7): RHB Research remains upbeat on Matrix Concepts Holdings Bhd (KL:MATRIX), citing steady recurring income from its healthcare business, Mawar Medical Centre (MMC), and stronger growth, as its ward expansion nears completion by the end of 2025.

According to RHB, the current expansion will see MMC’s bed capacity increasing from 88 to 109 upon completion.

“In the longer term, the adjacent 1.7-acre land provides an opportunity for further expansion, including the development of an eight-storey building that could potentially accommodate up to 200 beds,” RHB said in a note on Friday. The house has a 'buy' call on Matrix Concepts, with a target price of RM2.72.

With MMC’s earnings projected to contribute 4% to 5% to Matrix Concepts' bottom line, the expanded capacity is expected to drive long-term revenue growth.

However, RHB cautioned that the potential implementation of the Diagnostic Related Groups system — where treatment costs are determined based on case complexity rather than individual charges — could cap the hospital’s upside potential.

Nevertheless, analysts are projecting MMC’s profit before tax margin over the medium term to hover around 13% to 15%, which are comparable to larger hospitals based in the Klang Valley region.

Meanwhile, for the property segment, analysts are anticipating the Malaysia Vision Valley City (MVV City) to be the main driver upon its maiden launch in Matrix Concepts' financial year ending March 31, 2026.

In December 2024, Matrix Concepts, in partnership with the Negeri Sembilan government (NS Corporation), broke ground on the first phase of MVV City in the state. Holding an 85% stake, Matrix Concepts will take the lead in driving the project forward.

With a gross development value of RM15 billion and a 12-year development period, MVV City's Phase 1 covers 2,382 acres, and will comprise over 1,000 acres of industrial space, 15,000 residential units, and a 174-acre commercial lot.

Matrix Concepts was last trading at RM2.20, valuing the company at RM2.75 billion.

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