Matrix Concepts 2 Mega Projects Offer Earnings Visibility For The Next Decade
MBSB Investment Bank Bhd (MBSB IB) maintains a BUY call on Matrix Concepts Holdings Bhd, raising its target price to RM1.65 from RM1.59, as analysts see Bandar Sri Sendayan and the newly launched MVV City as key drivers of future earnings growth. The research house highlights that Bandar Sri Sendayan remains the company’s earnings backbone, contributing 88% of total revenue in FY25.
This township, with a gross development value (GDV) of RM6.5 billion and ongoing projects worth RM1.8 billion, is expected to sustain earnings visibility for the next decade, buoyed by its proximity to the Klang Valley and affordable landed homes priced between RM400,000 and RM600,000.
MBSB IB noted that MVV City, Matrix Concepts’ first integrated township within the MVV 2.0 corridor, is positioned as the next major growth catalyst. With a total landbank of 2,382 acres and a projected GDV of RM20 billion over 12 years, MVV City is earmarked to feature industrial, residential and commercial developments.
The company targets RM300 million in land sales from the first phase of industrial development, and analysts project that MVV City could potentially boost earnings by 50% to 70% beyond FY30. Groundbreaking for MVV City took place in December 2024, with 1,000 acres allocated for industrial development.
Beyond Negeri Sembilan, Matrix Concepts is diversifying its property portfolio, recently acquiring a 70% effective stake in HLL Group, which has projects in Banting and Sepang and developing a high-rise project in Cheras. The company aims to increase earnings contribution from outside Negeri Sembilan to 30%, reducing reliance on a single region.
Meanwhile, Mawar Medical Centre in Seremban is expected to deliver stable earnings of RM12 million to RM15 million annually, supported by robust demand for healthcare services in the area.
The firm has kept its earnings forecasts for FY26, FY27 and FY28 unchanged, but revised the target price higher after narrowing the RNAV discount to 22% from 25%, reflecting improved sentiment in the property sector following expectations of an overnight policy rate (OPR) cut.
The house remains positive on Matrix Concepts, citing resilient demand for landed homes in Negeri Sembilan and the long-term earnings potential from MVV City as key reasons for the Buy recommendation. The revised target price of RM1.65 reflects confidence in the company’s growth trajectory, underpinned by its diversified project pipeline and strategic expansion into the Klang Valley.
