KUALA LUMPUR: RHB Research has maintained its Buy call on Matrix Concepts with a raised fair value of RM3.80, given the incremental value to its RNAV estimate.
In a note on Monday, the research house said Matrix acquired 164-acre freehold land in Labu for RM71.46mil.
"This acquisition is important to replenish Matrix’s existing Sendayan TechValley (STV) landbank to ensure the sustainability of its high gross margin.
"Based on indicative selling prices of RM30-35 psf, we expect Matrix to make 50% gross margin
from selling the industrial land plots," it said.
RHB made no changes to the FY14-15 earnings forecasts.
"We expect the company to achieve RM650mil-700mil new sales (sales in 1H amounted to RM291mo;) in FY14, out of which about RM100mil will come from industrial land sale.
"We believe industrial land sales will be more material next year, given the presence of ready buyers for this new land," it said.
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