Wednesday 20 November 2013

Matrix Gives Dividend Again

Matrix FY13Q3 Financial Result

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.


  1. I think Matrix still has room to grow in terms of price as its PE still lower compare with Huayang and Tambun. In addition, its market capital is larger than Huayang and Tambun. Market will eventually rate it higher.

  2. Agree. The only thing I'm not very comfortable with Matrix is its sales of industrial properties/land. This land will finish one day and will affect its top/bottom lines.

    However, I think in next 1-2 yrs should be fine. Hope Matrix will develop other projects in time to compensate for the diminishing industrial land.