Matrix Concepts aim for more projects in Klang Valley, Johor, Australia and Indonesia

Matrix Concepts Holdings Bhd will continue to expand outside of Negeri Sembilan where it has been a key player for years to develop more projects in Klang Valley and Johor for future earnings growth.

It is also looking at new developments in Melbourne, Australia, and Jakarta, Indonesia in a bid to expand its project portfolio.

The developer said that it has embarked on a steady diversification of its revenue stream and the efforts have widened the group’s geographical footprint to capture more growth opportunities.

As at December 31, 2020, the total gross development value (GDV) for ongoing developments in Malaysia stood at RM2.41 billion while international projects amounted to RM1.04 billion

Underpinned by the commendable sales performance of RM1 billion in the preceding financial year ended March 31, 2020, the group continued to launch seven new development projects during the nine months ended December 31, 2020, with a total GDV of RM773.2 million.

“Following the successful expansions outside Seremban, the group continues to reinforce its international reach and further strengthen its brand as a premier developer,” it said in a filing with Bursa Malaysia.

Matrix Concepts has embarked on its second development in Australia namely, M. Greenvale in Melbourne.

M. Greenvale comprises residential lots situated on a 9.7-acre land with a GDV of RM79 million.

The developer said in the filing that it has recorded take-up of 82.3 per cent as at December 31, 2020 for M. Greenvale.

Matrix Concepts reported a net profit of RM75.34 million in the third quarter ended December 31, 2020 (Q3 2021) as versus to RM65.33 in Q3 2020, underpinned by revenue growth on the back of increased property development activities.

Its revenue improved by 13.1 per cent to RM315.41 million from RM278.96 million previously.

The group’s property development segment contributed RM307.7 million in revenue for the quarter, an increase of 14.2 per cent from RM269.5 million previously.

It said property sales and marketing activities remained robust and recorded new property sales of RM263.2 million in Q3 2021.

The higher sales were assisted by virtual communication tools as well as online sales and marketing channels, it said.

Revenue contribution from the group’s investment properties namely, Matrix Global Schools, d’Tempat Country Club, and d’Sora Business Boutique Hotel fell by RM1.8 million in Q3 2021 to RM7.7 million from RM9.5 million in Q3 2020.

Going forward, the group said its core objective remains focused on improving its township developments of Sendayan Developments, comprising Bandar Sri Sendayan, Ara Sendayan, and Tiara Sendayan in Negeri Sembilan, as well as Bandar Seri Impian (BSI) in Kluang, Johor.

In response to the positive market demand for Sendayan Developments, the group said that it launched RM773.2 million worth of new projects in the nine months ended December 31, 2020, which garnered a take-up rate of 51.8 per cent for the same period.

For the remaining three months of the financial year ending March 31, 2021 (FY2021), Matrix Concepts said it has lined up an additional RM250 million worth of new launches.

“Total launches for FY2021 would amount to RM1 billion, sustaining the group’s profitability until FY2023,” it said.

The group said it will continue to adopt a cautiously optimistic outlook, backed by encouraging demand recorded for its ongoing developments, the reimplementation of Home Ownership Campaign until May 31, and Bank Negara Malaysia’s announcement on reducing the overnight policy rate by 125 basis points to date since January 2020.

In the international markets, Matrix Concepts said the completion of the group’s investment into the Islamic Financial Towers development in Pantai Indah Kapuk 2 in Jakarta, Indonesia, undertaken together with Indonesian conglomerates Agung Sedayu Group and Salim Group, is expected to take longer than expected due to the

serious Covid-19 situation in Jakarta pending the mass rollout of vaccinations.

The joint venture company undertaking the development, PT Fin Centerindo Satu, has a healthy financial position with no borrowings, it said.

Source: NST