HLIB Research said industrial sales worth RM233mil were secured from RM628mil worth of land launched in the first quarter ended June 30, 2025.
PETALING JAYA: Property developer Matrix Concepts Holdings Bhd
’s outlook is holding firm as the company sees strong sales momentum from the launch of industrial properties located in the Malaysia Vision Valley (MVV) growth corridor located in Negri Sembilan.
Hong Leong Investment Bank (HLIB) Research, which recently met with the company’s management, said industrial sales worth RM233mil were secured from RM628mil worth of land launched in the first quarter ended June 30, 2025 (1Q26).
The company launched 117.36ha of industrial land in 1Q26 and aims to secure another RM220mil of industrial sales in the coming quarters, which brings total secured sales to RM450mil.
It expects to recognise a fifth of these sales in the financial year ending March 31, 2026 (FY26), with the rest in FY27.
“Initial land parcels from MVV were sold at around RM60 per sq ft (psf), but newer transactions have been concluded at just under RM80 psf, indicating healthy price appreciation and strong underlying demand,” the research house said.
HLIB Research has maintained a “buy” call on the stock with an unchanged target price of RM1.75 a share, indicating that the diversification into industrial projects in Negri Sembilan together with residential launches in the Klang Valley broadens earnings visibility and mitigates the risks of relying on the company’s core landed residential segment.
“Coupled with a generous dividend payout ratio of more than 50%, the stock offers an attractive FY26 dividend yield of 5.1%, reinforcing its appeal as a steady growth and income play,” it pointed out.
A key takeaway from the meeting includes the company’s entry into Banting and Sepang in Selangor via the acquisition of a 70% stake in the Horizon group of companies for RM78mil announced in April and completed in August.
Furthermore, the research house noted the acquisition expands Matrix’s exposure to the Klang Valley high-rise residential segment.
The company shared it would launch affordable residential properties in Bandar Sri Impian, Kluang, Johor in FY27 while pausing the launch of higher-priced residential properties as demand slows down in this price range in the later launches.
As for the flagship Bandar Sri Sendayan township in Negri Sembilan, the company noted the tightening loan approvals have led to a longer conversion period from bookings to sales despite underlying demand.
On a quarterly basis, the company usually records RM200mil to RM300mil in sales, but this has not been the case in 4Q25 and 1Q26, with sales at RM205.2mil and RM174.4mil respectively.
