About Matrix
Matrix Concepts Holdings Berhad (MATRIX) is a holding company
involved in the business of property development, construction,
hospitality and education. At FY2019, Matrix has built over 6,450
properties in Malaysia and Australia with a total Gross Development
Value (GDV) of RM3.67 billion over the past 5 years.
Besides that, Matrix also operates Matrix Global Schools in
Sendayan Development. MGS consists of an international preschool,
international school and a private school on a purpose-built campus
situated at the centre of Bandar Sri Sendayan, Negeri Sembilan.
On top of that, Matrix also operates 380,000 sq ft d’Tempat Country Club in the Sendayan Development. The country club offers a variety of recreational facilities which includes swimming pool, aqua gym, F&B outlets, bowling alley, tennis and squash court and others. There is currently 6,000 members.
Matrix also runs d’Sora Boutique Business Hotel. It has 72 guest rooms. The occupancy rate is 55% at FY2019 and 50% at FY2018.
On top of that, Matrix also operates 380,000 sq ft d’Tempat Country Club in the Sendayan Development. The country club offers a variety of recreational facilities which includes swimming pool, aqua gym, F&B outlets, bowling alley, tennis and squash court and others. There is currently 6,000 members.
Matrix also runs d’Sora Boutique Business Hotel. It has 72 guest rooms. The occupancy rate is 55% at FY2019 and 50% at FY2018.
Income Statement
In FY2019, Matrix experienced growth in all their business segment as shown below.
From the screenshot above, we can see that Matrix’s main
contributor of revenue is property development (96.69%) followed by
education (1.9%) and hospitality (1.4%).
|
Financial Year |
3/31/2019 |
3/31/2018 |
3/31/2017 |
3/31/2016 |
12/31/2014 |
|
Sales/Revenue |
1,045,531 |
818,477 |
774,978 |
912,201 |
598,842 |
|
Net Income |
218,389 |
213,280 |
185,278 |
260,850 |
182,236 |
|
Profit Margin |
20.89% |
26.06% |
23.91% |
28.60% |
30.43% |
In FY2019, Matrix managed to bring in a record breaking RM1.05
billion revenue despite challenging operating environment for property
developer. Their latest annual revenue was 27.4% higher than previous
year. This is due to higher contribution from ongoing projects. In
addition, Matrix’s maiden project in Australia contributed RM85.50
million, which account for 8.18% of total revenue.
However, net profit was only marginally better (2.32%) than FY2018 despite their high revenue. This is due to lower contributions from industrial property segment and switch in overall mix to provide more midrange products in tandem of market demand.
However, net profit was only marginally better (2.32%) than FY2018 despite their high revenue. This is due to lower contributions from industrial property segment and switch in overall mix to provide more midrange products in tandem of market demand.
Balance Sheet
|
Financial Year |
3/31/2019 |
3/31/2018 |
3/31/2017 |
3/31/2016 |
12/31/2014 |
|
Cash & Short-Term Investments |
264,210 |
280,428 |
117,307 |
77,860 |
96,739 |
|
Total Current Assets |
1,360,691 |
969,931 |
547,906 |
616,127 |
799,212 |
|
Total Non-Current Assets |
737,222 |
894,836 |
1,007,372 |
685,682 |
237,299 |
|
Total Assets |
2,097,913 |
1,864,767 |
1,555,278 |
1,301,809 |
1,036,511 |
|
Total Debt |
362,303 |
315,071 |
274,172 |
204,419 |
78,200 |
|
Total Current Liabilities |
568,820 |
468,369 |
324,740 |
280,179 |
343,700 |
|
Total Non-Current Liabilities |
201,147 |
189,406 |
206,579 |
136,436 |
29,054 |
|
Total Liabilities |
769,967 |
657,775 |
531,319 |
416,615 |
372,754 |
|
Shareholder’s Equity |
1,327,946 |
1,206,992 |
1,023,959 |
885,194 |
663,757 |
Matrix’s asset has increased 16.71% due to land cost under
non-current inventories being transferred to current inventories for
development. Cash and short term investments decreased slightly.
Overall, total assets of Matrix have increased consistently over the
past 5 years.
Matrix’s total debt has also increased from RM315.07 million to RM363.2 million to finance work capital for ongoing projects.
However, the growth of assets outgrows their liabilities. We can see this from the consistent growth of shareholders’ equity. Matrix has book value of RM1.76 based on this annual report.
Matrix’s total debt has also increased from RM315.07 million to RM363.2 million to finance work capital for ongoing projects.
However, the growth of assets outgrows their liabilities. We can see this from the consistent growth of shareholders’ equity. Matrix has book value of RM1.76 based on this annual report.
Future Prospect
As at 31 March 2019, total property unbilled sales stood at RM1.2 billion while the GDV is RM2.60 billion.
On top of that, Matrix has shored its landbank position to 1,665 acres with an estimated GDV of RM14.18 billion. The management mentioned that the lands are meant to be developed progressively over the next decade. Matrix has acquired 232 acres of land at RM98 million in FY2019.
According to Matrix 2019 annual report, the group currently has planned projects with total GDV of RM11.58 billion awaiting development until 2027.
Matrix’s Sendayan Developments is a highly desired address in Klang valley. The group expect the project to have an estimated GDP (Gross Development Value) of RM15.8 billion by the time the project completes (roughly 15 years later).
Other than that, Matrix’s other township, the 900-acre Bandar Seri Impian in addition to the landbank of 309.5 acres located near Kluang, Johor has a GDV of RM3.60 billion.
Matrix also entered into a high rise development joint venture with Chambers Serviced Residences. The project is located in the heart of KL city centre and is expected to be completed on Q1 2022. The project has received 65% sales so far.
In the land down under (Australia), Matrix’s M.Carnagie project was successfully completed and handed over to buyer, this Melbourne project has contributed over RM85.5 million in sales. The group intend to capitalize on this initial success to launch more projects in Melbourne.
For FY2020, Matrix intends to launch RM1.3 billion worth of property into the market. Their launching project includes
On top of that, Matrix has shored its landbank position to 1,665 acres with an estimated GDV of RM14.18 billion. The management mentioned that the lands are meant to be developed progressively over the next decade. Matrix has acquired 232 acres of land at RM98 million in FY2019.
According to Matrix 2019 annual report, the group currently has planned projects with total GDV of RM11.58 billion awaiting development until 2027.
Matrix’s Sendayan Developments is a highly desired address in Klang valley. The group expect the project to have an estimated GDP (Gross Development Value) of RM15.8 billion by the time the project completes (roughly 15 years later).
Other than that, Matrix’s other township, the 900-acre Bandar Seri Impian in addition to the landbank of 309.5 acres located near Kluang, Johor has a GDV of RM3.60 billion.
Matrix also entered into a high rise development joint venture with Chambers Serviced Residences. The project is located in the heart of KL city centre and is expected to be completed on Q1 2022. The project has received 65% sales so far.
In the land down under (Australia), Matrix’s M.Carnagie project was successfully completed and handed over to buyer, this Melbourne project has contributed over RM85.5 million in sales. The group intend to capitalize on this initial success to launch more projects in Melbourne.
For FY2020, Matrix intends to launch RM1.3 billion worth of property into the market. Their launching project includes
|
Project |
Location |
Description |
Gross Development Value |
|
Hijayu Aman |
Malaysia |
360 units of 2-storey terrace houses |
RM216 million |
|
Hijayu Resort Homes Phase 5 and Hijayu Residence 1 |
Malaysia |
541 units of 2-storey terrace houses |
RM412.5 million |
|
Ara Sendayan 2A |
Malaysia |
Not stated |
Not stated |
|
Tiara Sendayan Precinct 3, Precinct 5 and Precinct 6 |
Malaysia |
966 units of 2-storey house |
RM483.2 million |
|
Bandar Seri Impian (Impiana Bayu 3A) |
Malaysia |
83 units of 2 storey terrace homes |
RM44.60 million |
|
Unnamed project near Setia Walk in Puchong |
Malaysia |
Not stated |
RM410 million |
|
M.Greenvale |
Melbourne, Australia |
70 landed residential lots (Buyer can build their home according to preference) |
Not stated |
Financial Ratios
|
Financial Year |
3/31/2019 |
3/31/2018 |
3/31/2017 |
3/31/2016 |
12/31/2014 |
|
ROE |
17.23% |
19.12% |
19.41% |
33.68% |
27.46% |
|
EPS |
29.00 |
32.00 |
28.70 |
37.00 |
28.10 |
|
DPS |
11.80 |
11.66 |
9.61 |
12.67 |
9.63 |
|
Book Value |
1.61 |
1.47 |
1.24 |
1.08 |
0.81 |
|
DPR |
40.69% |
36.43% |
33.47% |
34.24% |
34.25% |
ROE of MATRIX has consistently been above 15%. Do take note
that the number is higher for FY2016 due to a 15 months financial year.
The financial year end was changed from 31st December to 31st March on 2016.
Ignoring the unusual number on FY2016, MATRIX has achieved consistent growth in profits, dividend and book value over the past 5 years.
Ignoring the unusual number on FY2016, MATRIX has achieved consistent growth in profits, dividend and book value over the past 5 years.
Valuation
|
Current Price |
1.89 |
|
Dividend Yield |
6.24% |
|
P/E Ratio |
6.52 |
|
P/B Ratio |
1.17 |
At the time of writing, MATRIX share price is RM1.89. Its
dividend yield, P/E ratio and P/B ratio is 6.24%, 6.52 and 1.17
respectively.
What I Like and Don't Like About MATRIX
What I Like
- Consistent growth in net profit, dividend and book value (see Ratios)
- Lots of project planned ahead. Income visibility for the near future (See prospect)
- High dividend yield while retaining more than half of earnings (See Ratios and Valuation)
What I don’t like
- Depressed property market and consumer sentiment (Lots of overhang units in malaysia)
