Matrix Concepts’ earnings up 27% in 2Q as worker shortage issues dissipate

• The group’s revenue grew at a faster pace in 2QFY2024, to RM359.35 million or 62% higher than RM222.35 million in 2QFY2023 as normalisation of construction speed led to improvement in recognition of revenue from the sale of residential and commercial properties.

KUALA LUMPUR (Nov 23): Matrix Concepts Holdings Bhd's net profit grew 27% for the second quarter ended Sept 30, 2023 (2QFY2024) fuelled by improved construction activities as labour shortage issues dissipate.

Despite a narrower margin due to increased selling and marketing expenses, the developer declared a 2.5 sen interim dividend with an ex-date set for Dec 21.

Quarterly net profit rose to RM64.03 million or 5.12 sen per share for 2QFY2024 from RM50.57 million or 4.04 sen per share a year ago, said the group in a stock exchange filing on Thursday (Nov 23).

The group’s revenue grew at a faster pace in 2QFY2024, to RM359.35 million or 62% higher than RM222.35 million in 2QFY2023 as normalisation of construction speed led to improvement in recognition of revenue from the sale of residential and commercial properties.

Net profit for the first half of FY2024 (1HFY2024) rose by 32% to RM128.63 million from RM97.61 million in the previous corresponding period, while revenue grew 53% to RM690.78 million from RM451.61 million.

Matrix Concepts expects to deliver continued growth going forward, driven by “robust” demand for its property offerings, especially its township development in Negeri Sembilan.

“This resilience is attributable to a noticeable shift in the preferences of Klang Valley residents, opting to relocate to areas outside the city centre, made easier by the well-developed road networks, superior connectivity, and the evolving landscape of remote and flexible working arrangements,” it noted.

“Furthermore, the group’s focus [on] optimising construction efficiency is further reinforced by the successful recruitment of foreign labour to meet its workforce requirements at construction sites.

“This positions the group to be cautiously optimistic of accelerating recovery of revenue recognition, backed by a proven track record in scaling up construction activities,” it added.

Tabung Haji emerges as substantial shareholder in Matrix Concepts

Separately, Matrix Concepts announced that Lembaga Tabung Haji (LTH) has emerged as its substantial shareholder with a 5% stake.

The pilgrim fund acquired about 17.42 million shares on Monday (Nov 20), bringing its stakeholding to 62.59 million shares, Matrix said in a bourse filing, pushing it beyond the 5% threshold necessary to be deemed a substantial shareholder.

No details on the purchase price was provided, but based on Matrix Concepts’ closing price of RM1.61 on Monday, LTH could have acquired the stake for about RM28.05 million.

Besides LTH, Matrix Concepts' other substantial shareholders are Shining Term Sdn Bhd, a private vehicle of Matrix Concepts executive deputy chairman Datuk Seri Lee Tian Hock, which holds a 12.67% stake. Lee also holds an 11% direct stake in the company.

Shares of Matrix Concepts finished unchanged at RM1.62 on Thursday, giving it a market capitalisation of RM2.03 billion.

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