Matrix Concepts (MCH MK)

Launched Industrial Land Plots At MVV City in 1Q

• Maintain BUY and TP of MYR1.72, 31% upside with c.7% FY26 (Mar) yield. Matrix Concepts’ 1QFY26 results are in line. Its performance has improved from the past two quarters – selling & marketing expenses as well as administrative & general expenses were more contained. 1QFY26 property sales totalled MYR381.5m. We expect property sales to be stronger as the company ramps up its launches, and higher contributions from the sale of industrial land plots in Malaysia Vision Valley (MVV) City. This should help to drive MCH to meet its FY26 MYR1.6bn sales target (FY25: MYR1.38bn).
• 1QFY26 results review. Revenue for 1QFY26 dropped slightly QoQ, as the previous quarter saw more substantial recognition of converted sales. However, the improved earnings were largely attributed to lower selling & marketing as well as administrative & general expenses. This lifted its overall EBIT margin to 30% (4QFY25: 17%). Meanwhile, the healthcare division was affected by some expenses being charged out – this arose from the ongoing capacity expansion that will be completed in 3QFY26. Net gearing remained stable at 0.15x, from 0.16x in the previous quarter. A 1.75 sen first interim single-tier DPS was declared (vs 1.35 sen in 4QFY25).
• Encouraging property sales in 1QFY26. 1QFY26 property sales achieved MYR381.5m, vs RM360.6m in 4QFY25. About MYR650.9m worth of projects were launched during the quarter, including MYR628m from the industrial lots at MVV City. Sendayan projects generated MYR174.4m in sales, followed by Levia Residences (MYR49.8m) and Bandar Seri Impian (MYR15m). The sale of industrial land at MVV City achieved a take-up rate of 51% and contributed sales amounting to MYR143m in 1QFY26. The remaining bookings of MYR140m are expected to be converted into contractual sales over the next two quarters. Billings should start to kick in from late FY26, due to ongoing earth works at the site. For FY26, management has set a launch target of MYR1.77bn. The remaining launches are mainly township products that are located in Sendayan and Bandar Seri Impian.
• We make no changes to our earnings forecasts. Unbilled sales remained rather steady at MYR1.49bn, from MYR1.46bn as at 4QFY25.
• Maintain TP. Our TP is based on a 25% discount to RNAV with a 2% ESG premium included, given our ESG score of 3.10 out of 4 for the company (country median: 3). Any downside risks would stem from weaker-than-anticipated market conditions.

Share Performance (%)

Forecasts and Valuation

Overall ESG Score: 3.1 (out of 4)

E Score: 2.7 (GOOD)

S Score: 4.0 (EXCELLENT)

G Score: 3.0 (GOOD)

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