Matrix Concepts' 2QFY2024 earnings to be stronger on yearly basis, says MIDF

• MIDF said it is forecasting Matrix Concepts' FY2024 earnings to come in at RM256 million, which represents a growth of 15.8% year-on-year (y-o-y). Matrix Concepts is scheduled to release its 2QFY2024 earnings by the end of this month.

KUALA LUMPUR (Nov 22): MIDF Research has maintained its “buy” rating on Matrix Concepts Holdings Bhd at RM1.60 with an unchanged target price of RM1.86 and said it expects the developer’s 2QFY2024 earnings to be stronger on a yearly basis, due to a pick-up in construction progress at its project sites.

In a note on Wednesday, MIDF said it is forecasting Matrix Concepts' FY2024 earnings to come in at RM256 million, which represents a growth of 15.8% year-on-year (y-o-y). Matrix Concepts is scheduled to release its 2QFY2024 earnings by the end of this month.

“On the other hand, new sales are also expected to be stable on a quarterly basis which should be on track to hit management's new sales target of RM1.3 billion as demand for landed houses in Bandar Sri Sendayan remains resilient.

“Besides, we also expect a dividend payout in 2QFY24 which should be on track to meet our dividend payout projection of 9.8 sen per share for FY24.

“That translates into an attractive dividend yield of 6%,” it said.

MIDF said it is positive on Matrix Concepts for (1) its status as an established township developer in Seremban that focuses on affordable homes, (2) good track record of dividend payout, (3) better earnings prospect from FY2024 onwards, (4) near-term catalyst from its Indonesian project and landbank expansion in Labu, and (5) healthy balance sheet.

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