PETALING JAYA: Property developer Matrix Concepts Holdings Bhd sustained its growth momentum by recording a 9.5% jump in its net profit to RM259.9mil for its financial year ended March 31, 2021 (FY2021), despite the challenging market conditions for the property sector.
The group recorded a net profit margin of 23% for the financial year, among the highest in the property sector, as well as five-year highs in net profit for the past three quarters.
Matrix Concepts said this was supported by expedited construction activities following the upliftment of the initial movement control order (MCO) in May 2020, favourable product mix, lower sales and marketing expenses and adjustment in tax provisions.
“The improved performance was achieved on the back of a resilient revenue of RM1.1bil in FY2021, as the group swiftly adapted to the new normal and regained momentum in its progress billings to pre-pandemic levels,” it said in a statement.
Recognition from residential and commercial properties amounted to RM994.1mil from RM1.15bil previously, while sales of industrial properties increased to RM104mil from RM89.8mil.
The Group’s investment properties recorded a drop in revenue from RM37.9mil to RM29.6mil.
Group chairman Datuk Mohamad Haslah Mohamad Amin said Matrix Concepts remained resilient and was able to maintain its earnings at five-year high levels.
“We achieved this at a time of significant challenges in the property sector and uncertainties arising from the Covid-19 pandemic.
“These challenges presented an opportunity to refocus on operational sustainability and prudent financial management, which has resulted in three consecutive quarters of robust double-digit growth in earnings.
“We continue to succeed in capturing the unabated demand for affordably priced landed properties by tailoring our launches to latest market needs, helped by the adoption of online sales and social media,” he said in a statement, adding that the Matrix Concepts is on firm ground as one of the leading property development companies in Malaysia, as it continues delivering quality homes at attractive value propositions to help meet the population’s growing homeownership needs.
Matrix Concepts’ adoption of online sales and marketing activities contributed to better reach and engagement of property buyers, allowing it to register new property sales of RM1.2bil, up 16.7% from RM1bil in FY2020.
For the final quarter ended March 31, Matrix Concepts posted a 41.2% year-on-year (y-o-y) jump in its net profit from RM55.6mil to RM78.5mil, making it the group’s third consecutive quarter of bottomline growth.
This came on the back of improved margins, reduced sales and marketing expenses and lower tax expenses.
Although revenue came in 17.8% lower y-o-y at RM388.2mil due to reduced recognition from residential properties, this was partially mitigated by higher industrial property sales.
As at end-FY2021, the group’s ongoing gross development value (GDV) amounted to RM2.3bil while unbilled sales stood at RM1.02bil, to be recognised over the next 15 months.
Haslah said the healthy progress of Matrix Concepts’ ongoing developments, coupled with RM1.6bil worth of new property launches planned for FY2022 will support their growth going forward.
“I am confident we are well-positioned to benefit from improvements in market conditions, and hope to continue rewarding our stakeholders sustainably,” he said.
Matrix Concepts declared a fourth interim dividend of 4 sen per share in respect of FY2021, the highest in the past five years, with ex-date on June 23 and payment date on July 8.
Total dividends for FY2021 amounted to 12.0 sen per share, with estimated payout of RM100.1 million or 39.9% of FY2021 profit after tax.