KUALA LUMPUR: RHB research has maintained its buy call on Matrix Concepts Bhd with a target price of RM2.35 following its recent meeting with management.
According to RHB, Matrix shared that its joint venture in Indonesia is a 3.5ha development located within PIK2 Sedayu Indo CIty in North Jakarta.
Its IFD project with a GDV of US$500mil will be developed in two phases, phase 1 of which includes the iconic twin towers of 26 storeys each with a podium on 1.4ha of land.
"The GDV is estimated at USD200m, with a gross margin of 40-50%, and is slated to be launched in 2H19. Management guided that the consortium will likely keep one office block for rental income and put another block up for en bloc sale," said RHB.
It added that Mateix has addured that the current equity injection is sufficient for the whole 3.6ha developments, andthe company should not need additional capital injection going forward.
RHB said maiden earnings from INdonesia should come from FY21 onwards, and it had already adjusted its forecast.
"As for DPS, we tweak our FY20-21 forecast slightly as we now expect FY20 DPS to be flat from FY19. Given the dilution from the placement, our revised DPS forecast translates to a payout ratio of 47-48% vs 42-43% in the past.
"After our revision, the dividend yield is still attractive, at 6-7%," it said.
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