Dynamic duo: Mohamad Haslah (right) and group executive deputy chairman Datuk Seri Lee Tian Hock. Matrix Concepts’ focus on cost efficiency also led to improved profit margins.
SEREMBAN: Property developer Matrix Concepts Holdings Bhd posted a net profit of RM60.7mil in the first quarter ended June 30, 2024 (1Q25), on the back of a 5.2% year-on-year increase in new property sales to RM321.3mil.
The award winning developer attributed the higher sales to healthy demand across all the group’s developments, namely Sendayan developments in Seremban, Levia Residences in Kuala Lumpur, and Bandar Seri Impian in Kluang.
Driven by the strong first-quarter sales performance, Matrix Concepts chairman Datuk Mohamad Haslah Mohamad Amin said the group is targeting to secure RM1.3bil in new property sales for the financial year ending March 31, 2025 (FY25).
This was based on its growth strategy supported by a robust pipeline of projects exceeding RM1.6bil in value strategically located across Negri Sembilan, Klang Valley, and Johor.
“Matrix Concepts is strategically positioned to capitalise on the robust demand for our properties in Sendayan Developments.
“The strong lineup of property launches this year will undoubtedly drive us towards achieving our sales targets and sustaining a solid earnings trajectory,” he said in a statement.
Mohamad Haslah said the group’s recent land development agreement with NS Corp for 1,000 acres of prime land in the Malaysian Vision Valley 2.0 (MVV) development corridor, complementing the 1,382-acre land acquisition secured last year, marks a significant milestone in its growth journey.“These strategic initiatives, with an estimated combined gross development value of RM12bil provide us with a substantial platform for long-term expansion, ensuring our ability to deliver sustainable growth well into the next decade,” he said.
The group’s unbilled sales increased by 23.5% to RM1.59bil as at June 30, 2024 from RM1.28bil as at March 31, 2024, providing visibility for future earnings recognition over the next 15 to 18 months and reinforcing its sustainable financial position.
Matrix Concepts reported a 15.6% decrease in revenue to RM279.7mil in 1Q25 ended June 30, 2024 from RM331.4mil in the previous corresponding quarter.
This was attributed mainly due to timing of new property launches at its flagship Sendayan Developments. This it said, will be recognised in the coming quarters.
As a result, Sendayan Developments experienced a 16.6% decrease in revenue recognition to RM250.3mil from RM300mil in the previous year.
The revenue performance, it said, was partially mitigated by a notable 59.8% increase in revenue from the group’s other business units, encompassing education, hospitality, and healthcare, to RM16.2mil in 1Q25 from RM10.1mil previously.
This growth was further bolstered by the inclusion of RM4.3mil in revenue from Mawar Medical Centre, the group’s healthcare division in Seremban.
Matrix Concepts’ focus on cost efficiency also led to improved profit margins despite the lower top-line.
Gross profit margin expanded to 50.2% from 45.9% in the previous year, although gross profit decreased by 7.8% to RM140.4mil from RM152.2 mil previously.
Similarly, net profit margin also showed improvement to 21.7% from 19.5% previously, while net profit in 1Q25 decreased by 6.1% to RM60.7mil from RM64.6mil.
Reinforcing its commitment to shareholders, the group declared a first interim dividend of 2.5 sen per share in respect of the financial year ending March 31, 2025, with the dividend ex-date on Sept 26, 2024 and the payment date on Oct 10, 2024.
The dividend payout amounts to RM31.3mil or 50.9% of 1Q25 profit after tax.
Mohamad Haslah said the group’s consistent track record of exceeding RM1bil in annual new property sales over the past four years underscores the strength of its business model and the effectiveness of its long-term development strategy.
“The sustained performance, complemented with our cost efficiency and the growing contribution from our expanded business segments, has enabled us to deliver strong earnings and consistently reward our shareholders with meaningful dividends,” he said.
Building on this success, he said, the group remains committed to actively pursuing land banking opportunities to further expand its presence in Klang Valley and Johor, while also exploring promising international ventures in Australia and Indonesia.
