CIMB Research said Matrix Concepts has maintained consistency in its quarterly dividend payout for an uninterrupted 12-year period since 2013.
PETALING JAYA: Property developer Matrix Concepts Holdings Bhd
is expected to see further upside from its venture into affordable healthcare through Mawar Medical Centre Seremban (MMC) in Bukit Rasah, analysts say.
Matrix Concepts’ stake is owned via its 70%-owned Matrix Medicare while the remaining 30% is held privately by major shareholder, Datuk Seri Lee Tian Hock.
According to CIMB Research, Matrix Concepts successfully steered the hospital unit to pretax-profit breakeven in its financial year ended March 31, 2023 (FY23) after acquiring MMC in 2019.
The turnaround plan included capital investments into advanced medical equipment and a significant expansion of bed capacity to 109 beds presently from 30 beds before, the research house said.
“This improvements provide the operational base needed for consistent profitability. For FY26 to FY28, we forecast revenue contributions rising gradually to between RM15mil and RM17mil, based on revenue of RM1.1mil to RM1.2mil per bed. The hospital is now at an average of 70% occupancy, which is reaching peak capacity,” CIMB Research said.
The research house resumed coverage on Matrix Concepts with a “buy” call and a sum of parts-based target price of RM1.75 per share underpinned by a strong FY26 property sales target of RM1.6bil and a robust launch pipeline of RM2.3bil.
As of the first half of FY26, the company’s unbilled property sales stood at RM1.6bil.
CIMB Research said the stock offers a compelling potential return on equity of up to 13% and forecast dividend yields of 5% to 7% for FY26 to FY28 .
“Matrix Concepts has maintained consistency in its quarterly dividend payout for an uninterrupted 12-year period since 2013, underscoring its strong cash-flow discipline and cementing its commitment to rewarding long-term shareholders,” the research house said.
Another significant project for the company is the joint development with Golog Holdings of the 618 acre China-Malaysia Air Silk Road Dual Hub Industrial Park with a gross development value of RM8bil in Negri Sembilan.
The project is set to serve as an inland port with customs facilities and advanced cold-chain storage capabilities.
Matrix Concepts signed a memorandum of understanding with Golog last year to jointly develop the proposed site which is in the larger Malaysia Vision Valley City development in Negri Sembilan.
