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Tuesday, November 19, 2013

Matrix Concepts 财神爷

Matrix Concept just released its third quarter report today and it turned out to be just another nice result for the group. 

For the third quarter, the group recorded a turnover of RM127m and net profit of RM36m with a net profit margin of 28.41%. 

If compared with preceding quarters, there is a sign of revenue drop as management indicated that it's due to higher revenue recognition of the residential properties sold during preceding quarters. Good point is the margin for this quarter is better due to higher sales of industrial properties that carry higher margin. 

For the 9 months period, group earning per share is around 37.3 cents based on the no of shares of 300.7m. Let's assume a full year EPS for year 2013 be around 50 cents, current PE is around 6.48 based on today closing price of RM3.24. There is still room to advance for its share price if compared with Tambun and Huayang. 

For year 2012, the group recorded revenue of RM456m and net profit of RM103.5m. It will be a good year for the group as the group already reached similar revenue and net profit as it was last full year with just 9 months period. 

In terms of balance sheet, there is nothing much to highlight as the group has net cash and good current ratio. Based on the net asset per share of RM1.80, estimated ROE for year 2013 will be around 27 which is quite good. Hopefully the management team able to continue producing a good return to the shareholders. 

In addition to the announcement, there are still a couple of corporate proposals are undergoing by the groups. 
  1. Acquisition of land in Section 46, KL for RM43.6m
  2. Acquisition of land at Mukim of Labu for RM47.5m
  3. Acquisition of land in Mukim of Rasah for RM59.3m
If all this acquisitions are funding internally, the group is still in net cash position.

In addition to the quarter result announcement, the group also declared third interim dividend of 5 cents along with Speeeeecial dividend of 5 cents too. This sum up a total of 30.5 cents dividend declared for this year excluded tax ( 13.5 + 7 + 5 + 5 cents dividend). Based on my purchase price, the dividend yield is 11.8%. And what's more, the management team mentioned they will continue to maintain quarterly dividend payout as part of its 40% dividend policy. So, expect another dividend payout at 4th quarter. 

For this case, Matrix Concept is really dividend king, really is 财神爷

Go go go Matrix 

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