MATRIX (5236) - Matrix: Earning Dipped From Selling Lower Margin Products
Result Update
For QE30/9/2016, Matrix's net profit dropped 11% q-o-q but rose 49% y-o-y to RM46 million. Its revenue rose 15% q-o-q or 85% y-o-y to RM224 million. Revenue rose q-o-q mainly due to increase in revenue recognized from the Group‟s property development activities. Profits dropped q-o-q mainly due to the change in product mix of the Group's development properties, as the Group launched more affordably-priced housing projects that cater to the current market demand.
Table 1: Matrix's last 8 quarterly P&L
Graph 1: Matrix's last 15 quarterly P&L
Valuation
Matrix (closed at RM2.48 yesterday) is now trading at a trailing PER of 7.7 times (based on last 4 quarters' EPS of 32.1 sen). Its price to book is at 1.48 times (based on NTA of RM1.68 per share as at 30/9/2016). Matrix paid out dividend totaling 14.65 sen for the past 4 quarters, which translates into a DY of 5.9%. Overall, Matrix is deemed fairly valued.
Technical Outlook
Matrix had a strong uptrend from its listing in June 2013 to October 2014 (see uptrend line, Sa-Sa). Since then, it has been moving in a sideways manner. Nevertheless, the stock has formed a more gradual uptrend line (either SS or S1-S) with support at RM2.45. If this new uptrend line holds, Matrix may continue to rise in the near term.
Chart 1: Matrix's monthly chart as at Nov 15, 2016 (Source: Shareinvestor.com)\
Conclusion
Based on satisfactory financial performance, fairly valuation & mildly bullish technical outlook, Matrix could be a good stock for long-term investment.
Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.
For QE30/9/2016, Matrix's net profit dropped 11% q-o-q but rose 49% y-o-y to RM46 million. Its revenue rose 15% q-o-q or 85% y-o-y to RM224 million. Revenue rose q-o-q mainly due to increase in revenue recognized from the Group‟s property development activities. Profits dropped q-o-q mainly due to the change in product mix of the Group's development properties, as the Group launched more affordably-priced housing projects that cater to the current market demand.
Table 1: Matrix's last 8 quarterly P&L
Graph 1: Matrix's last 15 quarterly P&L
Valuation
Matrix (closed at RM2.48 yesterday) is now trading at a trailing PER of 7.7 times (based on last 4 quarters' EPS of 32.1 sen). Its price to book is at 1.48 times (based on NTA of RM1.68 per share as at 30/9/2016). Matrix paid out dividend totaling 14.65 sen for the past 4 quarters, which translates into a DY of 5.9%. Overall, Matrix is deemed fairly valued.
Technical Outlook
Matrix had a strong uptrend from its listing in June 2013 to October 2014 (see uptrend line, Sa-Sa). Since then, it has been moving in a sideways manner. Nevertheless, the stock has formed a more gradual uptrend line (either SS or S1-S) with support at RM2.45. If this new uptrend line holds, Matrix may continue to rise in the near term.
Chart 1: Matrix's monthly chart as at Nov 15, 2016 (Source: Shareinvestor.com)\
Conclusion
Based on satisfactory financial performance, fairly valuation & mildly bullish technical outlook, Matrix could be a good stock for long-term investment.
Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.
MATRIX (5236) - Matrix: Earning Dipped From Selling Lower Margin Products
http://nexttrade.blogspot.my/2016/11/matrix-earning-dipped-from-selling.html
