Navigating the dynamic currents of the Malaysian property market requires both resilience and strategic foresight. Today, we delve into the latest quarterly report from **Matrix Concepts Holdings Berhad**, a well-established property developer known for its township developments. This report offers a candid look at the company’s performance for the financial year ended 31 March 2025, revealing a mixed bag of results: a dip in quarterly and annual profits, yet sustained sales momentum and exciting long-term growth prospects, including a dividend declaration.
Join us as we unpack the key figures, understand the drivers behind them, and explore what the future might hold for Matrix Concepts.
Core Financial Highlights: A Closer Look
Matrix Concepts’ latest financial results present a nuanced picture. While the fourth quarter saw a decline in revenue and profit compared to the same period last year, the company demonstrated an encouraging sequential improvement from the preceding quarter, indicating a potential stabilization or recovery in performance.
Quarterly Performance (4Q25 vs. 4Q24)
For the fourth quarter ended 31 March 2025 (4Q25), Matrix Concepts reported a reduction in its top and bottom lines when compared to the corresponding quarter of the previous financial year (4Q24). This was primarily due to lower revenue recognition from its core property development segment.
4Q25
Revenue: RM305.2 million
Gross Profit: RM158.5 million
Profit Before Tax: RM49.2 million
Profit After Tax: RM41.7 million
Basic Earnings Per Share: 2.88 sen
4Q24
Revenue: RM353.1 million
Gross Profit: RM175.9 million
Profit Before Tax: RM86.9 million
Profit After Tax: RM64.6 million
Basic Earnings Per Share: 4.84 sen
This translates to a 13.6% decrease in revenue, a 9.9% drop in gross profit, a significant 43.4% decline in profit before tax, and a 35.5% reduction in profit after tax for the quarter. Basic earnings per share also saw a 40.5% decrease, from 4.84 sen to 2.88 sen.
Full-Year Performance (FYE 31 March 2025 vs. FYE 31 March 2024)
Looking at the full financial year, the trends largely mirrored the quarterly performance, albeit with less drastic percentage declines, reflecting the cumulative impact of market conditions and strategic shifts.
| Financial Metric | FYE 31 March 2025 (RM’000) | FYE 31 March 2024 (RM’000) | Change (%) |
|---|---|---|---|
| Revenue | 1,186,851 | 1,344,073 | -11.7% |
| Gross Profit | 604,876 | 623,283 | -3.0% |
| Profit Before Tax | 275,102 | 332,406 | -17.2% |
| Profit After Tax | 214,919 | 245,844 | -12.6% |
| Basic Earnings Per Share (sen) | 16.37 | 19.52 | -16.2% |
The full-year revenue decreased by 11.7%, while profit after tax saw a 12.6% decline. Basic earnings per share for the full year also decreased by 16.2% to 16.37 sen. It’s important to note that the weighted average number of ordinary shares increased significantly in FY25 (from 1,251,348 thousand to 1,307,915 thousand for the cumulative period) due to a bonus issue, which naturally impacts the earnings per share calculation.
Sequential Quarter Performance (4Q25 vs. 3Q25)
Despite the year-on-year declines, the company showed an encouraging sequential improvement. Revenue for 4Q25 increased by 8.6% compared to the preceding quarter (3Q25), rising from RM280.9 million to RM305.2 million. Gross profit also improved by 8.4% quarter-on-quarter. This suggests that the company is adapting to market conditions, with the increase primarily driven by higher revenue recognition from the property development segment due to improved sales conversion from previously secured bookings.
Segmental Performance and Financial Health
The property development segment remained the primary revenue driver, contributing RM292.0 million in 4Q25. While the flagship Sendayan Developments saw an 18.8% decline in revenue, the Group’s second high-rise development in Kuala Lumpur, Levia Residences, provided an encouraging offset, contributing RM18.7 million and significantly boosting Klang Valley revenue by 938.9%.
Beyond property, the hospitality and education segments grew by 6.5% in 4Q25, with education showing robust 53.3% growth due to higher student enrolment. The healthcare division, spearheaded by Mawar Medical Centre, also commenced contributions.
Despite lower revenue, Matrix Concepts maintained a healthy gross profit margin of 51.9% in 4Q25, an improvement from 49.8% in 4Q24. However, the profit after tax (PAT) margin declined to 13.7% from 18.3% previously. This was mainly attributed to higher administrative and general expenses (rising to 30.9% of revenue from 26.4%) and a significant increase in finance costs (to RM2.9 million from RM0.1 million), largely due to increased borrowings for land acquisition related to the upcoming MVV City development.
On the balance sheet, total assets increased to RM3.16 billion as of 31 March 2025, from RM2.68 billion in the previous year. However, total liabilities also saw a substantial increase to RM953.0 million from RM558.4 million, with total borrowings rising to RM541.3 million from approximately RM145.4 million. Cash and bank balances notably decreased from RM375.6 million to RM175.8 million. The net assets per share declined from RM1.70 to RM1.18, largely influenced by the bonus issue which increased the number of shares in circulation.
A significant point from the cash flow statement is the shift from net cash generated from operating activities of RM331.0 million in FY24 to net cash *used* of RM481.8 million in FY25. This was primarily driven by a substantial increase in inventories (RM653.9 million), reflecting investments in property development land and projects.
On a positive note, the Group achieved new property sales of RM360.6 million during the quarter, with Sendayan Developments accounting for 88.1% of these sales. As of 31 March 2025, unbilled sales stood at a robust RM1.46 billion, providing strong earnings visibility for the next 15 to 18 months.
Industry Trends and Future Prospects
The Malaysian property market is experiencing a robust period, with 2024 recording the highest volume and value of property transactions in a decade. This growth is underpinned by stable economic conditions and various government initiatives aimed at stimulating the market. The residential, commercial, and industrial sub-sectors all showed positive growth, indicating broad-based recovery and demand. Government support, such as stamp duty exemptions for first-time homebuyers, affordable housing programmes, and the easing of MM2H requirements, continues to bolster confidence.
Against this backdrop, Matrix Concepts is strategically positioning itself for continued growth. The company’s flagship Sendayan Developments in Seremban continues to attract homebuyers, especially those from the Klang Valley seeking quality housing with improved infrastructure connectivity and flexible work arrangements.
A significant catalyst for future growth is the **Malaysia Vision Valley City (MVV City)** in Negeri Sembilan. This landmark joint development with the state government spans 2,382 acres with an estimated gross development value (GDV) of RM15 billion over a 12-year horizon. Initial launches are planned for the financial year ending 31 March 2026, and its strategic location near the proposed High-Speed Rail (HSR) corridor could significantly enhance its long-term appeal.
In the Klang Valley, the positive market response to Levia Residences, its second high-rise residential development, led to the accelerated launch of Phase 2, which is expected to contribute positively to future earnings. Furthermore, the recent acquisition of strategic stakes in Horizon L&L Sdn Bhd, Exoland Property Management Sdn Bhd, and Valour Rock Sdn Bhd for RM77.9 million will expand Matrix Concepts’ footprint in the high-growth Sepang and Banting areas of Selangor. This move aligns with the Group’s long-term goal of deriving more than 30% of its revenue from outside Negeri Sembilan.
Internationally, Matrix Concepts continues to make progress. In Australia, following the successful sell-out of the M. Greenvale project, the focus shifts to the larger M333 St. Kilda mixed-use project in Melbourne. In Indonesia, the completion of Menara Syariah, its inaugural development in Jakarta, sets the stage for future projects in that market.
Summary
Matrix Concepts’ latest quarterly report reflects a period of strategic investment and adaptation in a dynamic market. While the immediate financial performance showed a decline on a year-on-year basis, the sequential improvement in revenue and sustained sales momentum are encouraging. The company’s focus on its core township developments, coupled with strategic diversification into high-rise and new geographical areas, positions it well for future growth. The substantial unbilled sales provide a clear revenue pipeline, and the planned MVV City development promises significant long-term value creation.
However, investors should also be mindful of the increased administrative costs, rising finance expenses due to higher borrowings, and the significant negative operating cash flow, largely driven by increased inventory, which indicates substantial upfront investment in future projects. While the overall property market outlook in Malaysia remains positive, the increase in unsold under construction and not constructed units in certain sub-sectors suggests that market absorption rates for new launches need careful monitoring.
Key points to consider from this report include:
- The impact of substantial investments in land and property development costs on the company’s cash flow and borrowings.
- The success of new launches like Levia Residences in diversifying revenue streams beyond flagship developments.
- The long-term potential of the MVV City project and the strategic expansion into Selangor.
- The company’s ability to manage rising operational and finance costs amidst its growth initiatives.
- The overall health of the Malaysian property market, which remains supportive, but with nuances in different segments.
In my view, Matrix Concepts is clearly in a growth phase, investing heavily in its future pipeline, particularly with the MVV City project and strategic land acquisitions. While this has impacted short-term profitability and cash flow, it lays the groundwork for sustained long-term development. The challenge will be in effectively managing these large-scale projects and ensuring efficient sales conversion to translate unbilled sales into recognized revenue and profits.
What are your thoughts on Matrix Concepts’ latest performance and its strategic direction? Do you believe the investments in new projects and land banking will pay off in the coming years? Share your insights in the comments below!
Stay tuned for more in-depth analyses of Malaysian companies and market trends.
