PETALING JAYA: Matrix Concepts Holdings Bhd
’s current share price, which is at a two-year low, offers an attractive entry point for long-term investors.
MBSB Research noted that the developer’s current valuation fails to reflect the company’s robust underlying fundamentals.
It added that Matrix’s business outlook is anchored by a significant earnings recovery anticipated for financial year 2027 (FY27), ending March 31, supported by stronger new sales which are expected to hit RM1.8bil.
This figure would be 20% higher than the RM1.5bil sales achieved in FY26, when the company experienced a period of temporary weakness that has led to the fall in its share price.
This optimistic view is fuelled by resilient residential demand in Matrix’s flagship Bandar Sri Sendayan township project, backed by industrial land sales and the strategic launch of Levia Residence in Puchong.
Additionally, MBSB Research noted that Matrix’s gross profit margins are expected to improve to above 40% in FY27, driven by the recognition of higher-margin industrial components within its developments.
Moreover, a critical driver of the group’s future growth is the MVV City development within the Malaysia Vision Valley (MVV 2.0) initiative.
“We believe Matrix’s MVV City will continue to progress despite the current situation in Negri Sembilan, as its long-term development is driven by structural demand for industrial and logistics.
“Besides, MVV 2.0 is supported by substantial investments and capital commitments from multiple developers such as Sime Darby Property Bhd and Eco World Development Group Bhd, which should underpin its long-term development trajectory,” MBSB Research noted in its latest research note on Matrix.
Furthermore, the research house added that the Nilai–Labu–Bandar Enstek Highway, which is scheduled for completion in 2027, will significantly strengthen MVV City’s appeal for industrial and township projects.
MBSB Research thus maintained its “buy” call on Matrix with an unchanged target price of RM1.55 a share, which is based on a 30% discount to the company’s revised net asset value of RM2.21 per share.
It has also projected a dividend yield of 6% for FY27.
MBSB Research forecast Matrix’s core net income to grow from RM215mil in FY26 to RM269mil or core earnings per share (EPS) of 14.36 sen in FY27, before likely hitting RM319mil or EPS of 16.98 sen in FY28.
