Matrix Concepts sees 28% increase in 2Q net profit to half-decade high of RM75m

Matrix Concepts sees 28% increase in 2Q net profit to half-decade high of RM75m
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KUALA LUMPUR (Nov 18): Matrix Concepts Holdings Bhd reported a 28% increase in its net profit to RM75.1 million for its second quarter ended Sept 30, 2020 (2QFY21), marking the highest quarterly earnings for the property developer in five years.

The group declared a second interim dividend of three sen per share for FY21, bringing the total dividend payout for the financial year to five sen per share or RM41.7 million in total.

In a statement, the group attributed the growth in net profit to revenue recognition of a favourable product mix and expedited construction progress, as well as optimised sales and marketing costs amid the adoption of digital marketing efforts.

It added that the improvement signalled a return to pre-Movement Control Order (MCO) operating levels.

Meanwhile, its revenue for the quarter contracted 7.3% to RM262 million from RM282.7 million a year earlier.

The majority of its revenue was contributed by recognition from residential and commercial properties (RM227.6 million), sales of industrial properties (RM26.7 million) and contribution from investment properties (RM7.8 million).

Matrix Concepts chairman Datuk Mohamad Haslah Amin pointed out the ramp-up in construction progress following the implementation of the Recovery MCO in June, versus the lower productivity during the March to May MCO period.

“Following the operational disruptions faced during the MCO, we remain resolved to deliver a swift recovery to pre-pandemic levels.

“Our focus in 2QFY21 was to quickly mobilise our construction teams while maintaining stringent health protection measures, as well as transitioning to online sales and marketing channels that enabled us to continue recording healthy sales of new properties,” he said.

For the first half of FY21, net profit was lower at RM106.1 million, down 6.4% from RM113.4 million in the previous year, while revenue fell to RM424 million from RM531.2 million.

The lower cumulative performance was due to lower contribution from the property development segment and investment properties during 1QFY21, amid the halt in operation due to the MCO.

The group launched three projects with a gross development value of RM353.2 million during the period, which saw an average take-up rate of 80.7% as at Sept 30, 2020.

“Given the ongoing challenges in the property sector, the strong take-up rates achieved by our new property launches in 1H21 exceeded our expectations.

“This was helped by our strategy of tailoring offerings to meet latest market needs, such as fast-tracking launches of right-priced homes that feature both affordability and spaciousness at our award-winning Sendayan Developments, have struck a right chord with buyers,” said Mohamad Haslah.

Matrix Concepts noted that the Laman Sendayan 1 and Floria @ Tiara Sendayan projects saw take-up rates of 99% and 97.2% respectively.

“As our operations are on track to normalcy, we are committed to delivering healthy performance and dividends to our shareholders for the second half of FY21.

“Encouraged by the continued strong take-up of our properties, we would be launching RM787.3 million worth of new properties in the second half to capture market demand,” he added.

At noon market break, Matrix Concepts closed one sen or 0.6% lower at RM1.66, valuing the group at RM1.39 billion.

Lam Jian Wyn