Matrix Gives Dividend Again

Matrix FY13Q3 Financial Result

MATRIX	FY13Q3	FY13Q2	FY13Q1
Revenue	127.4	147.3	155.6
PBT	48.7	40.6	61.5
PBT%	38.2	27.6	39.5
PAT	36.2	30.0	46.0
Res & Com Prop %	66.7	76.0	76.0
Industrial Prop %	27.8	21.0	24.0
Industrial Land %	5.5	3.0	0.0
Total Equity	540.1	518.3	387.9
Total Assets	862.8	793.0	645.4
Trade Receivables	161.5	118.1	185.7
Prop dev cost	362.4	400.0	360.5
Inventories	1.4	2.6	3.0
Cash	211.2	206.5	38.5
Total Liabilities	322.7	274.7	257.5
Trade Payables	229.5	198.3	204.8
ST Borrowings	36.7	8.8	17.0
LT Borrowings	15.5	16.1	16.9
Net Cash Flow	180.8	176.1	8.1
Operation	120.7	65.2	9.5
Investment	-37.7	-17.0	-0.4
Financing	97.8	127.9	-1.1
EPS	12.10	13.10	63.70
NAS	1.80	1.73	1.63
D/E Ratio	Net Cash	Net cash	Net Cash

Though its revenue drops 13.5% QoQ, Matrix posts a decent FY13Q3 result with its net profit increases 21% QoQ, thanks largely to improved margin compared to the preceding quarter.

As Matrix's business involves selling industrial properties & land in its Sendayan Techvalley which carries higher margin, its revenue, profit & margin will fluctuate according to how much sales generated from them.

It is obvious that Matrix sells more industrial properties & land in Q3, as the percentage of revenue from these 2 groups rises from 24% to 33.3% from 1H13 to 9M13.

Its 9 months revenue in the sales of industrial properties is RM119.6mil, which is 49.9% higher than RM79.8mil for the entire FY2012.

Sendayan TechValley has total 685 acres land made up of 128 lots. Up to 1H13, 351 acres or 74 lots have been sold.

Anyway, I think its FY13Q3 result is good generally. Its balance sheet and cash flow stay healthy as well.

       Hijayu @ Bandar Sri Sendayan

At the same time, Matrix declares a third interim dividend of 5sen plus a special dividend of 5sen, both single tier, bringing its total payout so far to net 25.4sen (RM76.3mil) which also represents 68% of 9MFY13 net profit, far above its dividend payout policy of at least 40%.

At yesterday's closing price of RM3.24, the 25.4sen will translate to 7.8% yield. If you miss the previous 2 dividends and only start to buy Matrix's shares today at RM3.24, the 10sen dividend will still give a 3% yield, and there might be more to come.

I conservatively estimate that Matrix can achieve a net profit of RM145mil for FY2013. So its estimated EPS will be 48.2sen. At yesterday's share price of RM3.24, its PE is still at a low 6.7x. My own target price will be PE 10x or RM4.82.

I have already top up a bit of Matrix in early November, so I'll continue to hold them and may still want to buy more if its PE still stay at low level.