KUALA LUMPUR: Matrix Concepts Holdings Bhd experienced an uptick in billings during the current fiscal year, attributed to an improvement in the labour shortage situation, according to Hong Leong Investment Bank (HLIB).
Consequently, this led to a decrease in its unbilled sales by 22.7 per cent to RM1.17 billion in the third quarter of the financial year 2024 (3QFY24), down from its peak of RM1.51 billion in 3QFY23.
HLIB stated in a note today that the firm anticipates the impact of this situation to diminish, paving the way for a return to normalised levels of billing.
The investment bank foresees modest earnings growth for Matrix Concepts in the subsequent quarters.
It said that the sales momentum for the company is expected to remain robust, particularly driven by its Sendayan development in Negeri Sembilan, which continues to serve as the primary contributor to sales.
Demand for properties in this township is bolstered by buyers from the Klang Valley region seeking landed homes farther away from the city centre, it said.
Matrix Concepts reported 3QFY24 core profit after taxation and minority interests (PATAMI) of RM57.2 million, which brought 9MFY24's sum to RM185.9 million (year-on-year growth of 22.3 per cent).
"This results were within our and consensus projections, forming 74.3 per cent and 76.1 per cent of full-year forecasts, respectively," HLIB said.
Year-on-year, the company's revenue declined 18.6 per cent due to the absence of contribution from its projects in Australia and Kuala Lumpur.
HLIB said that despite the top-line decline, core PATAMI increased by 5.3 per cent due to higher gross profit margin of 53.9 per cent (vs 41.4 per cent in 3Q23) as a result of a higher contribution from the Bandar Sri Sendayan project, which has a higher margin.
The investment bank maintained a buy on the company with an unchanged target price of RM1.87 based on a 45 per cent discount to its estimated revalued net asset value of RM3.40.
"The stock has a good projected dividend yield of 5.6 per cent," it said.
