Matrix Concepts: Net Profit Within Expectations (MCH MK, Outperform, TP: RM1.40)

Matrix Concepts Holdings (MCH) started FY27 with a net profit of RM60.2m (-4.4% YoY, +55.5% QoQ), which came in within consensus expectations. After a few quarters of underwhelming profits, the Group’s profitability improved in 1QFY27 driven by industrial land sale and higher property billings.

Matrix Concepts

The first quarter profit constituted 25.2% and 23.8% of our and consensus full year profit estimates. Revenue from the Group’s property development segment increased marginally by 1.5% QoQ to RM296.0m primarily due to stronger contributions from the Group’s residential developments, which increased 12.6% QoQ to RM268.6m.

“We understand that it has a comprehensive project pipeline valued at c.RM2.0bn in the Klang Valley and Horizon developments to be launched in FY27. Unbilled sales remained steady at c.RM1.5bn, providing clear earnings visibility over the next 15 to 18 months.

“All told, we maintain our earnings estimates. Given the recent price softness, we upgrade our Neutral call to Outperform with an unchanged target price (TP) of RM1.40. Our TP is pegged at c.20% premium to its book value, which we believe is justifiable given its consistency in delivering earnings and decent dividends,” says PIB.

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