Matrix Concepts new property sales up 35% in Q2 despite FMCO

PETALING JAYA: Property developer Matrix Concepts Holdings Bhd saw new property sales grow 35.2% to RM340.4 million in the second quarter ended Sept 30, 2021 (Q2’22) from RM251.8 million a year ago, on increasing demand for well-priced landed properties at its flagship Sendayan Developments.

Despite the full movement control order (FMCO) implemented in July 2021, the group capitalised on healthy home purchase sentiment in the affordable landed category supported by use of digital sales platforms. Notably, new residential launches in Q2’22 such as the 274-unit Laman Sendayan 3 and 90-unit Tiara Sendayan 9 projects achieved 100% and 94% take-up within weeks of launch.

Its Q2’22 net profit declined 31% to RM51.8 million from RM75.1 million previously attributed mainly to lower gross margins from the latest development series of Laman Sendayan 1 and 2, which are currently at the early phases of launches. Additionally, the group recorded 21.4% higher selling and marketing expenses of RM19.3 million versus RM15.9 million previously due to increased marketing activities.

Group revenue for Q2’22 revenue remained healthy at RM239 million albeit 8.6% lower compared to RM262 million last year due to the FMCO impact on project schedule. Of total Q2’22 revenue, recognition from residential and commercial properties amounted to RM203.1 million while industrial properties made up RM30.6 million. Revenue contribution from investment properties made up the remaining RM5.8 million in Q2’22.

Meanwhile, its H1’22 net profit stood at RM83.5 million, declining 21.3% from RM106.1 million previously. Unbilled sales, however, rose to RM1.1 billion as at Sept 30, 2021 compared to RM1 billion as at June 30, 2021, providing earnings visibility over the next 12 to 15 months.

For H1’22, the group reported revenue of RM402.9 million, 5% lower compared to RM424 million in the previous year. Of H1’22 revenue, residential and commercial properties contributed RM355.5 million, while sales of industrial properties made up RM33.8 million. The remaining RM13.6 million came from investment properties.

Chairman Datuk Mohamad Haslah Mohamad Amin (pix) said following the upliftment of the FMCO, it is seeing greater buying interest due to pent-up demand, which has allowed it to continue recording healthy sales growth in H1’22.

“We believe our sales resilience is due to the attractive pricing and value of our quality landed homes which are tailored to meet the growing needs for affordable homes among the population. We are in a solid position to achieve our sales target of RM1.2 billion for the current financial year as we believe demand for housing in the segment we are operating in will remain robust in the next few years.

“Our recovery from the FMCO is on track as we have swiftly returned to optimal construction activity since full operations resumed at the end of August 2021. We are confident of replicating last year’s achievement and return to our original development schedule by end of FY2022.”

Given the positive sentiment and heightened construction activity, the group is cautiously optimistic of maintaining a healthy performance and a firm recovery in the second half of FY2022.

“With the clear earnings visibility and optimal activity at our project sites, we look forward to improved earnings in the second half of FY2022, as well as providing sustainable and healthy dividends to our shareholders,” Haslah added.

The group declared a second interim dividend of 3 sen per share in respect of FY22. Together with the first interim dividend of 2 sen, total dividend payout would amount to 5 sen for H1’22, amounting to RM41.7 million or 51.6% of 1H22 profit after tax.