Matrix Concepts earnings up on record revenue
Sales underpinned by Rm1.08bil properties launched in 2020
PETALING JAYA: Matrix Concepts Holdings Bhd’s net profit for the financial year ended March 31, 2020, rose 7.3% to Rm234.30mil.
This was achieved on the back of record-breaking revenue of Rm1.28bil, which grew 22.6% due to increased progress billings from residential and industrial properties from Sendayan Developments in Negri Sembilan.
The property developer said the encouraging sales performance was underpinned by Rm1.08bil worth of properties launched in 2020.
“Despite the challenging property market, the company continues to enjoy a strong takeup of its residential properties, particularly in the Sendayan Developments with new property sales of over Rm1.04bil in 2020, attesting to unabated demand for properties with good value,” it said in a statement.
For the fourth quarter ended March 31, 2020, the company recorded a net profit of Rm55.58mil, on revenue of Rm472.14mil.
Matrix Concepts chairman Datuk Mohamad Haslah Mohamad Amin said the encouraging new property sales recorded in its current financial year pointed to the resilient demand and strong value proposition of the company’s products, in line with its focus to provide homes for the masses and enrich the lives of communities.
“To cater for the growing acceptance and resilient demand at our townships, we have increased our land bank by 750 acres in 2020, to support our growth for the next seven to 10 years.
“Coupled with our healthy balance sheet owing to our prudent policies, we are confident of weathering the uncertainties posed by the Covid-19 crisis and delivering commendable performance in 2021.”
Matrix Concepts said its optimism is also fuelled by the various initiatives announced under the Penjana initiative unveiled by the government such as the re-introduction of the Home Ownership Campaign, which is expected to provide a boost to the property sector.
The property developer added that Bank Negara’s move to reduce the overnight policy rate by 100 basis points since January 2020 would help ease loan requirements for prospective home buyers.
Underscoring the robust demand, Matrix Concepts reported an all-round growth in all segments in 2020.
“Contribution from residential and commercial properties improved to Rm1.15bil from Rm860.4mil previously, while sales of industrial properties increased to Rm89.8mil from Rm60.6mil.
“The group’s investment properties recorded a rise in revenue contribution to Rm37.9mil from Rm33.2mil a year ago,” it said.
The company’s ongoing gross development value amounted to Rm2.53bil as at March 31, 2020 from Rm2.6bil in the previous corresponding period.
Unbilled sales stood at Rm1.02bil, which will sustain earnings for the next 15 months.
Haslah said the company is targeting to launch Rm1.04bil worth of residential properties for its financial year ending March 31, 2021.
“We look forward to a challenging yet fruitful 2021 and remain committed to providing consistent dividend payouts, to distribute 40% of our net profit to shareholders,” he said.
Along with the commendable financial performance, the company declared a fourth interim single-tier dividend of 2.50 sen per share in respect of 2020.
Together with an earlier-paid first, second and third interim single-tier dividends of 3.00 sen per share, total estimated payout makes up Rm95.2mil or 40.6% of 2020 net profit.