Stocks In Focus MY (Matrix Concepts, Pavilion REIT, QL Resources) – 27/04/15
27 April 2015
Matrix Concepts Expects Double-digit Growth
Matrix Concepts Holdings expects the recurring income from its d’Tempat Country Club and the Matrix Global Schools to contribute up to 10 percent of its bottom line in the next three to five years.
The company’s property projects in Bandar Sri Sendayan (BSS) are expected to flourish in to a town centre, named Sendayan Icon Park, upon completion in seven to eight years. With 116 acres, there are ideas to develop a shopping mall, commercial units such as shophouses, a convention centre, a hospitality hotel, residential units and a medical facility.
The medical facility — which will be built in BSS — will be retained by the firm to generate recurring income. The group also sees significant strides in value of the BSS township if it continues to garner notable names in the education space, such as KDU University College.
Significance: Additionally, the company is on the lookout for property land, especially in high-growth areas in Penang, Kuala Lumpur and Sabah and mentions that it is not in a hurry to seal any deals. Through the launch of its township development projects in BSS, Seremban, Negeri Sembilan and Taman Seri Impian in Johor, the company is confident in achieving double-digit net profit growth despite the softer and sluggish property market this year.
Pavilion REIT Hits RM105m Revenue
Pavilion Real Estate Investment Trust(REIT) registered a 3.9 percent gain in gross revenue to RM105.1 million for the first quarter ended 31 March 2015 (1Q15), mainly
contributed by rental from 2014 asset enhancement areas. As property operating expenses remained flat, distributable income rose 6.7 percent to RM62.3 million.
HLIB Research noted that the group’s capital expenditure for FY15 will be approximately RM34 million, to be used to renovate the balance of toilets in Pavilion Mall, renovate part of floor space at Level 1, around the Gourmet Emporium area and upgrade air-conditioning system in the mall to ensure more efficiency in power consumption and distribution of airflow.
Tenancy sales for 1Q15 have been stable. Management mentioned that sales are slow in April as consumers tightened their belts. However, the research house believes that this is temporary as consumers will adjust their spending habits.
Significance: HLIB Research added that it was not overly concerned with the vacant space left by previous anchor tenant in Pavilion Tower because the office segment only contributes about 3 percent of total revenue for Pavilion REIT, but noted that one of the REIT’s top 10 tenants, Couch (M)’s tenancy is due in 3Q15. For now it has maintained a ‘Hold’ rating on the stock with a target price of RM1.47.
QL Resources Invests In Sunsuria
QL Resources is poised to emerge as a substiantial shareholder in property developer, Sunsuria, as the firm was believed to have purchased a stake of at least 5 percent in the developer who is said to be embarking on the Xiamen University Malaysia Campus property development project in Sepang.
This is likely QL Resources’ second investment in a public-listed company, after taking a 41.5 percent stake in biomass boiler manufacturing group Boilermech Holdings.
Besides the project in Sepang, another major development for Sunsuria occured in March, with its major shareholder Datuk Ter Leong Yap announcing that he was injecting his private property assets of over 440 acres worth RM350 million and which comes with a gross development value (GDV) of RM11 billion into Sunsuria.
Significance: QL’s recent takeover bid of fellow poultry player Lay Hong had failed and the owners of QL Resources have now placed confidence in Sunsuria’s major shareholder Datuk Ter Leong Yap (who is said to their acquaintance) to deliver on the property projects.
http://www.sharesinv.com
27 April 2015
Matrix Concepts Expects Double-digit Growth
Matrix Concepts Holdings expects the recurring income from its d’Tempat Country Club and the Matrix Global Schools to contribute up to 10 percent of its bottom line in the next three to five years.
The company’s property projects in Bandar Sri Sendayan (BSS) are expected to flourish in to a town centre, named Sendayan Icon Park, upon completion in seven to eight years. With 116 acres, there are ideas to develop a shopping mall, commercial units such as shophouses, a convention centre, a hospitality hotel, residential units and a medical facility.
The medical facility — which will be built in BSS — will be retained by the firm to generate recurring income. The group also sees significant strides in value of the BSS township if it continues to garner notable names in the education space, such as KDU University College.
Significance: Additionally, the company is on the lookout for property land, especially in high-growth areas in Penang, Kuala Lumpur and Sabah and mentions that it is not in a hurry to seal any deals. Through the launch of its township development projects in BSS, Seremban, Negeri Sembilan and Taman Seri Impian in Johor, the company is confident in achieving double-digit net profit growth despite the softer and sluggish property market this year.
Pavilion REIT Hits RM105m Revenue
Pavilion Real Estate Investment Trust(REIT) registered a 3.9 percent gain in gross revenue to RM105.1 million for the first quarter ended 31 March 2015 (1Q15), mainly
contributed by rental from 2014 asset enhancement areas. As property operating expenses remained flat, distributable income rose 6.7 percent to RM62.3 million.
HLIB Research noted that the group’s capital expenditure for FY15 will be approximately RM34 million, to be used to renovate the balance of toilets in Pavilion Mall, renovate part of floor space at Level 1, around the Gourmet Emporium area and upgrade air-conditioning system in the mall to ensure more efficiency in power consumption and distribution of airflow.
Tenancy sales for 1Q15 have been stable. Management mentioned that sales are slow in April as consumers tightened their belts. However, the research house believes that this is temporary as consumers will adjust their spending habits.
Significance: HLIB Research added that it was not overly concerned with the vacant space left by previous anchor tenant in Pavilion Tower because the office segment only contributes about 3 percent of total revenue for Pavilion REIT, but noted that one of the REIT’s top 10 tenants, Couch (M)’s tenancy is due in 3Q15. For now it has maintained a ‘Hold’ rating on the stock with a target price of RM1.47.
QL Resources Invests In Sunsuria
QL Resources is poised to emerge as a substiantial shareholder in property developer, Sunsuria, as the firm was believed to have purchased a stake of at least 5 percent in the developer who is said to be embarking on the Xiamen University Malaysia Campus property development project in Sepang.
This is likely QL Resources’ second investment in a public-listed company, after taking a 41.5 percent stake in biomass boiler manufacturing group Boilermech Holdings.
Besides the project in Sepang, another major development for Sunsuria occured in March, with its major shareholder Datuk Ter Leong Yap announcing that he was injecting his private property assets of over 440 acres worth RM350 million and which comes with a gross development value (GDV) of RM11 billion into Sunsuria.
Significance: QL’s recent takeover bid of fellow poultry player Lay Hong had failed and the owners of QL Resources have now placed confidence in Sunsuria’s major shareholder Datuk Ter Leong Yap (who is said to their acquaintance) to deliver on the property projects.
http://www.sharesinv.com
