RHB Investment said the MVV project should begin contributing to Matrix Concepts’ earnings by the second half of this year.
PETALING JAYA: Analysts are still holding a torch for Matrix Concepts Holdings Bhd, despite the group’s earnings coming in below expectations.
For the fourth quarter of its financial year ended March 31, 2025 (4Q25), the property developer posted a 30% drop in profit to RM42.7mil compared with RM60.60mil in the same quarter a year ago.
Hong Leong Investment Bank Research (HLIB Research) said the negative deviation was due to a persistent delay in conversion of sales to revenue, pre-launch expenses related to the group’s Malaysia Vision Valley City (MVV) township development in Negri Sembilan, and higher-than-expected administrative expenses.
Recognition of previous sales lifted revenue, but despite the improvement, profit remained largely flat, HLIB Research said.
“Matrix Concepts recorded 4Q25 sales of RM360.6mil which brought the FY25 total to RM1.38bil, the equivalent of 102.1% of its full-year sales target of RM1.35bil. In 4Q25, the group launched projects amounting to RM291.3mil, which brought its FY25 total to RM1.45bil. As of 4Q25, unbilled sales stood at RM1.46bil representing 1.30 times cover of its FY25 property development revenue,” the research house said.
HLIB Research maintained a “buy” call on Matrix Concepts with an unchanged target price of RM1.73.
“We remain positive about the group’s outlook, supported by its expanding footprint in Negri Sembilan, ongoing diversification into the Klang Valley, and growing contribution from its healthcare venture.”
Similarly, RHB Research said it maintained a “buy” call with a target price of RM1.72 as it expects revenue and expenses to normalise going into FY26.
RHB Investment said the MVV project should begin contributing to Matrix Concepts’ earnings by the second half of this year, driven by successful sales of industrial land.
“The company has already secured about RM350mil worth of industrial land sales, while earthworks have just started this month,” the research house noted.
RHB Research added it cut its forecast earnings for FY26 and FY27 by 8% and 9%, respectively.
“Net gearing will likely creep up to between 0.2 and 0.25 times as acquisition of the second parcel of MVV land should be completed in 2H26,” the research house said.
Meanwhile, MIDF Research said Matrix Concepts’ core net income came in within its expectations, justifying its “buy” call on the group with a target price of RM1.59.
“The earnings outlook for FY26 is expected to be stronger as delayed earnings recognition will be backloaded into FY26 and its dividend yield is attractive at 5.8%,” the research house noted.
MIDF Research also it introduced its earnings forecasts for FY28.
“We remain positive on Matrix Concepts as the development of land in MVV will serve as an earnings catalyst in the medium term. Besides, new sales momentum remains strong, supported by landed homes projects in Negri Sembilan as demand for landed housing remains resilient.”
