Matrix Concepts 2Q net profit soars 41% on strong demand

by **Cals** Wed 20 Aug 2014, 00:47

Business & Markets 2014

Written by Gho Chee Yuan of theedgemalaysia.com

Tuesday, 19 August 2014 13:26

KUALA LUMPUR (Aug 19): Matrix Concepts Holdings Bhd reported a 41.3% jump in second-quarter net profit, underpinned by strong demand for its new launches of affordable housing and industrial properties.

In a statement today, the Seremban-based property developer said its net profit rose to RM42.4 million for the second financial quarter ended June 30, 2014 (2QFY14) from RM30 million a year ago on higher sales of residential and industrial properties in the quarter.

Revenue increased 11.1% to RM163.7 million from RM147.3 million in 2QFY13.

The group also declared a second interim dividend of 3.75 sen per share for the financial year ending Dec 31, 2014 (FY14), payable on Oct 16.

"Despite reports of a cooling property market nationwide, the strong take-up of our newly-launched projects in 2QFY14 proves that demand for affordable properties remains intact," its chairman Datuk Mohamad Haslah Mohamad Amin said in the statement.

The two projects are Hijayu 3A (Phases 1 & 2) at Bandar Sri Sendayan in Seremban, and 26 units of double storey shop offices in Taman Seri Impian, Kluang, Johor.

For the six months period (6MFY14), Matrix Concepts’ net profit rose marginally to RM80.98 million from RM76.03 million a year ago, while revenue declined 34.5% to RM298.45 million from RM302.91 million in 6MFY13.

Going forward, Haslah said the group remains optimistic on the growth of the Seremban property sector given the sustainable catalysts in the long run.

"We are confident that the profitability of the group will be sustained through the launches of new development projects as well as the continuous sales of the current development projects," he added.

As at 12.30pm, Matrix Concepts' stock was traded at RM3.21, down 5 sen or 1.53% from yesterday with 254,700 units were changing hands.