Matrix Concepts Kicks Off FY2026 with Steady Profit Growth and a New Dividend Announcement
Leading township developer Matrix Concepts Holdings Berhad has just released its financial results for the first quarter ended June 30, 2025 (1Q26). The report signals a solid start to the new financial year, showcasing resilient profit growth and a continued commitment to shareholder returns. While facing some margin pressures, the company demonstrated effective cost management, ultimately boosting its bottom line.
Let’s dive into the numbers and see what they tell us about the company’s performance and future direction.
A key highlight for investors is the declaration of a first interim dividend of 1.75 sen per share for the financial year ending March 31, 2026. This underscores the management’s confidence in the company’s financial stability and future prospects.
Core Data Highlights: A Look at the Financial Scorecard
At a glance, Matrix Concepts delivered a commendable performance, navigating a dynamic market to post growth in key areas. Here’s a side-by-side comparison with the same quarter last year.
Quarter Ended 30 June 2025
Revenue: RM284.3 million
Profit Before Tax: RM83.0 million
Net Profit: RM64.2 million
Earnings Per Share: 3.35 sen
Quarter Ended 30 June 2024
Revenue: RM279.7 million
Profit Before Tax: RM81.1 million
Net Profit: RM61.5 million
Earnings Per Share: 4.85 sen
Revenue Edges Up on Strong Property Development
The Group’s revenue saw a modest increase of 1.6% to RM284.3 million. This growth was primarily fueled by the property development segment, which remains the company’s core engine. The flagship Sendayan Developments continued to be the main contributor, generating RM226.4 million. Additionally, the company’s second high-rise project in Kuala Lumpur, Levia Residence, is showing encouraging performance, contributing RM26.6 million to the top line.
Profitability: A Tale of Two Margins
While revenue grew, gross profit saw a slight dip of 4.8% to RM133.6 million. This led to a compression in the gross profit margin, which fell from 50.2% to 47.0%. The company attributes this to a change in “product mix,” particularly the higher contribution from the Levia Residence project, which likely has a different cost structure compared to its landed properties in Sendayan.
However, the story gets better further down the income statement. Net profit (Profit After Tax) recorded a healthy increase of 4.4%, reaching RM64.2 million. This was achieved through impressive operational efficiency, marked by a significant 51.9% reduction in selling and marketing expenses and a lower effective tax rate. This demonstrates strong cost control and management’s ability to protect the bottom line.
It is also worth noting that while Earnings Per Share (EPS) decreased, this was primarily due to a larger number of shares in circulation compared to the previous year, which has a dilutive effect on the per-share calculation.
Diving into Business Segments
The Group’s diversified business segments showed mixed results, with property development clearly leading the way.
| Segment | Revenue (RM’000) | Segment Results (RM’000) | Commentary |
|---|---|---|---|
| Property Development | 268,322 | 74,957 | The primary growth driver, powered by Sendayan and KL projects. |
| Education | 6,037 | 1,488 | Strong growth of 25.9% in revenue due to higher student enrolment. |
| Hospitality | 6,673 | 3,161 | A slight decline of 5.1% in revenue. |
| Healthcare | 3,245 | 3,184 | Revenue declined due to a temporary capacity expansion program at Mawar Medical Centre. |
Risk and Prospect Analysis: Navigating the Market Ahead
Matrix Concepts appears well-positioned for sustained growth, backed by a clear strategy and a robust project pipeline. The company reported strong new property sales of RM381.5 million during the quarter, bringing its total unbilled sales to a formidable RM1.5 billion. This provides clear earnings visibility for the next 15 to 18 months.
Opportunities on the Horizon
- Flagship Strength: The Sendayan Developments in Negeri Sembilan continue to attract homebuyers from the Klang Valley, thanks to affordability and improved connectivity.
- The Next Catalyst – MVV City: The long-term growth story is set to be supercharged by the Malaysia Vision Valley City (MVV City). This massive 2,382-acre integrated township, with an estimated GDV of RM15 billion over 12 years, is a transformative project that will solidify the Group’s industry leadership.
- Klang Valley Expansion: The company is actively growing its presence outside Negeri Sembilan. The success of Levia Residence and recent acquisitions in the high-growth Sepang and Banting corridors are steps toward its goal of generating over 30% of earnings from outside its home base.
- International Ventures: Projects in Melbourne, Australia (M333 St. Kilda) and Jakarta, Indonesia (Menara Syariah) provide geographical diversification and tap into different market dynamics.
Potential Challenges
Like any developer, Matrix Concepts operates in a market influenced by broader economic factors. Key risks include potential shifts in interest rates affecting housing affordability and fluctuations in construction material costs. The margin pressure observed this quarter from a changing product mix is also a factor to monitor, as the company balances its high-rise and township developments.
Summary and Outlook
Matrix Concepts has delivered a steady and reassuring start to its financial year. The company successfully translated a slight revenue increase into a more significant net profit gain through disciplined cost management. The consistent performance of its Sendayan township, coupled with promising new ventures in the Klang Valley and abroad, provides a multi-pronged growth strategy. The healthy unbilled sales and the new dividend declaration reflect a company that is both financially sound and confident about its future.
For investors, key areas to watch moving forward will be:
- The sales momentum and construction progress of its Klang Valley projects, particularly Levia Residence.
- Trends in profit margins as the product mix evolves.
- Updates on the initial launches and progress of the catalytic MVV City project.
- The successful integration and development plans for the newly acquired land in Selangor.
From my perspective, this report showcases a company that is firing on its core cylinders while strategically planting seeds for future growth. The ability to improve net profit despite gross margin pressure is a testament to strong management.
What are your thoughts on Matrix Concepts’ strategy of expanding into the competitive Klang Valley market? Do you think it’s a wise move to diversify from its stronghold in Negeri Sembilan?
Share your views in the comments below!
