Matrix Concepts 3Q profit falls 31.1% on lower revenue recognition from property sales

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KUALA LUMPUR (Nov 17): Matrix Concepts Holdings Bhd's net profit dropped 31.1% to RM31.08 million or 5.9 sen a share for the third quarter ended Sept 30, 2015 (3QFY15) from RM45.09 million or 10.5 sen a share a year ago, mainly due to lower revenue recognition from the sales of properties. 

The Negeri Sembilan-based property developer’s revenue also fell 18.4% to RM121.37 million in 3QFY15 from RM148.82 million in 3QFY14.

Nevertheless, it declared a third interim dividend of 3.5 sen per share for the financial year ending Dec 31, 2015 (FY15), payable on Jan 8, 2016. This brings the year’s total dividend to 10.6 sen per share (adjusted for one-for-six bonus issue) with a payout of RM58.2 million or 33% of the net profit for the nine months period (9MFY15).

For 9MFY15, Matrix Concepts’ net profit was 39.9% higher at RM176.38 million or 36.5 sen a share from RM126.09 million or 36.5 sen a share in 9MFY14. Earnings per share was the same as the group had enlarged its share base via a one-for-six bonus issue earlier in July.

Revenue for 9MFY15, meanwhile, rose 25.1% to RM559.41 million from RM447.26 million in 9MFY14.

In a statement today, Matrix Concepts noted that it sold 38.1% more properties in 9MFY15, with RM611.8 million worth of new sales compared with RM433 million a year ago.

Matrix Concepts chairman Datuk Mohamad Haslah Mohamad Amin said the group's unbilled sales stood at RM640.5 million as at Sept 30, 2015, which will last it until 2018.

"The strong buyer demand gives us the confidence to consider bringing forward some of the project launches that have been slated for next year," he added.

On its prospects, Matrix Concepts said it is confident that the group's profitability will be sustained through the launches of the projects as well as the continuous sales of the projects that have been launched.

“The group  is currently focused on the development of its township development projects in Bandar Sri Sendayan in Seremban, Negeri Sembilan and Bandar Seri Impian in Kluang, Johor,” it said in a filing with Bursa Malaysia today.

Matrix Concepts had launched its Suraiman (Phase 1) development project in Bandar Sri Sendayan, Seremban and targets to preview its Hijayu 3 development project, which is located in Bandar Sri Sendayan, Seremban in the fourth quarter of FY15.

Additionally, Matrix Concepts said it is banking on the group's d’Tempat Country Club, Matrix International School and Matrix Private School – all of which are fully operational – to enhance the marketability of its township developments.

As at 2.44pm, Matrix Concepts shares were traded down 1.22% at RM2.43, with 160,700 shares done. Its market capitalisation was RM1.35 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)