KUALA LUMPUR (Aug 10): Matrix Concepts Holdings Bhd shares slid 4.68% following the company’s announcement of its second quarter ended June 30, 2015 (2QFY15)’s earnings, which have dropped 29.7%.
At 3.22pm, the stock shed 11 sen to RM2.24, after some 1.41 million shares were traded. The current price gives it a market capitalisation of RM1.22 billion.
In a filing with Bursa Malaysia today, Matrix Concepts (fundamental: 2.15; valuation: 1.2) said its net profit for 2QFY15 came in at RM29.85 million from RM42.45 million a year ago.
The property developer attributed the decline to a decrease in revenue recognition from the sales of industrial properties which generally command a higher profit margin.
The company also posted a 26.4% drop in revenue for 2QFY15 at RM120.44 million compared with RM163.75 million in 2QFY14.
Despite the lower earnings, the property developer declared a second interim dividend of 3.5 sen per share (2QFY14: 3.75 sen) for the financial year ending Dec 31, 2015, payable on Oct 9.
This brings its year-to-date declared dividend to 7.75 sen per share compared to 8.75 sen per share in FY14.
For the first half of 2015 (1HFY15), Matrix Concepts' net profit grew 79.4% to RM145.3 million against RM80.99 million in 1HFY14.
Revenue rose 46.78% to RM438.05 million from RM298.45 million in 1HFY14.
The company said it is focusing on its township development projects in Bandar Sri Sendayan in Seremban, Negeri Sembilan and Bandar Seri Impian in Kluang, Johor, with several products already launched.
The company said it is planning to launch its Suriaman (Phase 1) and Residensi SIGC development projects located in Seremban in the second half of the financial year 2015 (2HFY15).
The group also expressed confidence that its profitability will be sustained through the launches of its development projects and the continuous sales of the development projects which have been launched.
(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.)