MIDF Research said the property developer’s Malaysia Vision Valley 2.0 project is set to be its “next growth driver”.
PETALING JAYA: Analysts remain upbeat on the prospects of Matrix Concepts Holdings Bhd, underpinned by the group’s various ongoing projects.
MIDF Research in a report said the property developer’s Malaysia Vision Valley 2.0 (MVV 2.0) project is set to be its “next growth driver”.
“The landbank expansion at MVV 2.0 in Labu, Negri Sembilan is expected to spur growth beyond financial year 2027 (FY27).”
Matrix Concepts acquired 1,382 acres of land in MVV 2.0 for RM460mil in 2022 and the acquisition will be completed by this year.
Matrix Concepts announced the acquisition of 1,000 acres of land adjacent to the first land acquisition in MVV 2.0 for RM435.6mil in June 2024.
That brings the total land bank of Matrix Concepts in MVV 2.0 to 2,382 acres.
MIDF Research noted that the total estimated gross development value for the land is RM12bil, with a development period of 12 years.
“Matrix Concepts earmarked 40% of the land or 1,000 acres for industrial development in view of the strong demand for industrial property in Malaysia.
“We opine that the MVV land will be the next growth driver for Matrix Concepts, on top of the development of Bandar Sri Sendayan as the group targets to have its first launch in MVV 2.0 in the second half of FY26.”
Additionally, MIDF Research said the growth of Bandar Sri Sendayan will remain stable going forward, supported by strong sales from that development.
“The township remains the key sales contributor to Matrix Concepts as it contributed 83% to total new property sales in FY24.
“The stellar performance of Bandar Sri Sendayan was driven by strong demand for affordable landed houses. Note that a double-storey landed house in Bandar Sri Sendayan is priced affordably at RM400,000 to RM600,000, which enables the township to capture the spillover demand from buyers in Kuala Lumpur.”
Additionally, MIDF Research said Matrix Concepts is about to reap the fruits from its Indonesian ventures. “Construction of its Menara Syariah which are two blocks of 29-storey premium office towers located at Pantai Indah Kapuk 2, Indonesia, were completed in December 2023.
“Management is not changing its plan to sell one block and lease the other block. We gather that the company is in an advanced stage to secure tenants for the first tower.”
Separately, MIDF Research noted that the company is actively searching for buyers for the second tower of Menara Syariah.
“Management plans to reward shareholders potentially through a dividend payout, if the company successfully monetises the second tower of Menara Syariah.”
MIDF Research is making no changes to Matrix Concepts’ earnings forecast for FY25, but is revising its FY26 and FY27 earnings forecast by 3.2% and 9.9% respectively, after factoring in contribution from MVV 2.0.
