This article first appeared in City & Country, The Edge Malaysia Weekly on November 25, 2024 - December 1, 2024
Matrix Concepts Holdings Bhd (KL:MATRIX), the leading property developer in Negeri Sembilan, recorded revenue of RM1.13 billion in its financial year ended March 31, 2023 (FY2023), up 26.7% year on year (y-o-y), while its profit after tax (PAT) rose to RM204.1 million, an increase of 1.6% y-o-y.
In FY2024, the developer delivered its highest revenue on record — RM1.334 billion, rising 20.8% y-o-y — while its PAT increased 17.9% y-o-y to RM244.3 million. Its net margin of 18.4% is among the industry’s highest.
The group recorded new property sales of RM1.3 billion, underpinning its financial performance in FY2024, while the team continued to secure a consistent take-up rate of above 80% for its property launches.
Co-CEO of property development division Tan Sze Chee suggests that these financial achievements signal the group’s return to optimal financial performance following the tumultuous operating environment since the outbreak of Covid-19 and the supply chain disruptions that ensued.
In FY2024, Matrix Concepts saw more revenue recognised from its healthcare business via its involvement in Mawar Medical Centre (previously known as Pusat Hemodialisis Mawar), highlighting the company’s concerted effort to diversify its revenue stream.
According to previous reports, the developer ventured into the healthcare sector in 2019 through its appointment as the exclusive management of MMC’s specialist hospital division, haemodialysis centre and clinics in Seremban, Negeri Sembilan. The medical centre, which was ordered by the Ministry of Health to cease operations following licensing issues and the mass resignation of its specialists, was rescued and revived by Matrix Concepts. This marked a significant turning point in revenue performance in FY2023, when the medical centre recorded its maiden net profit of RM2.2 million.
With the group’s return to optimal operating levels, Tan declares that it is now poised to be more aggressive in its expansion and diversification drive. She gives City & Country an update on the group’s ongoing developments, as well as its business expansion plans. The following are excerpts from the interview.
City & Country: Please give us an update on the progress of ongoing projects and the launches in the pipeline for the remainder of 2024 and going into 2025.
Tan Sze Chee: Our ongoing projects in Negeri Sembilan continue to perform strongly, with RM533.9 million in new sales in 2QFY2025 and an impressive take-up rate of 60%. Major projects like landed homes in Bayu Sutera, Eka Heights and Resort Villa are progressing well, ensuring continued revenue growth, while the first residential tower of Levia Residence, which will have two towers, in the Klang Valley has already secured a sales rate of more than 85%, giving us the encouragement to bring forward the launch preview for the second tower to September 2024. Collectively, Levia Residence carries a gross development value (GDV) of RM522 million. To date, Tower B has achieved a total booking rate of 55% since its introduction to the market.
Internationally, our apartment development M333 St Kilda in Australia is on track for completion by June 2025 and commercial development Menara Syariah in Indonesia has been completed, with advanced negotiations underway for leasing and sales.
Looking ahead, we have a robust pipeline of launches. In Negeri Sembilan, we plan to roll out new phases of Bayu Sutera, Eka Heights and Suria Heights, with a combined GDV of RM803.8 million in 2025. We are also preparing for the launch of our third Klang Valley project in Puchong, Selangor, featuring 1,300 serviced apartments with a GDV of RM700 million. Matrix Concepts’ next catalyst development is the Malaysia Vision Valley 2.0 (MVV 2.0) project, with 2,382 acres and a total GDV of RM12 billion (in FY2026).
The group is targeting sales of RM1.3 billion in FY2025, but the net profit in 1QFY2025 was down 6% y-o-y due to decreased revenue. What is your strategy to achieve the sales target?
We are implementing a multi-pronged strategy to drive growth and sustain revenue across our existing portfolio. First, we will intensify our efforts in the Negeri Sembilan developments where the demand for double-storey homes continues to be strong. Projects like Bayu Sutera and Eka Heights have shown solid take-up rates, and with further phases being launched in FY2025, we expect consistent sales momentum. Additionally, the Klang Valley market remains a priority, particularly with Levia Residence in Cheras. We will continue to leverage these ongoing projects to secure our sales targets, while always maintaining cost efficiencies to protect our margins.
Moreover, as M333 St Kilda in Australia nears completion, we will focus on selling the remaining units in this high-demand Melbourne location to capture more international revenue. At the same time, we are exploring targeted marketing campaigns and promotional activities to increase the take-up rates of our remaining units in completed projects, both locally and internationally.
While the launches in the MVV development are scheduled for FY2026, our current pipeline of Negeri Sembilan, Levia Residence and Johor launches provide a robust platform to drive sales in FY2025, ensuring we meet our goals despite the absence of significant new projects in the immediate term.
The group recently acquired another 1,000 acres in MVV 2.0, bringing the total close to 2,400 acres, with estimated GDV of RM12 billion. How will this project contribute to the company in terms of revenue and reputation?
The MVV development will present the group with its most impactful catalyst since the developments in Sendayan. This development will not only strengthen our foothold in Malaysia’s key growth corridors but also enhance our reputation as a leading player in the industry. Once launched, this project is poised to generate significant revenue, with a focus on sustainable urban living in each development phase.
With a GDV of RM12 billion and to be developed over 12 years, MVV will underpin the group’s growth strategy with a significant incremental revenue contribution from its first launch at the end of FY2026.
While planning a large-scale township comes with its inherent risks, we are confident that the demand for quality landed properties within a 10km radius of Seremban will remain strong, supported by excellent road connectivity between Seremban and various parts of the Klang Valley. This infrastructure ensures that the development is well positioned to meet the needs of both homebuyers and investors looking for convenient access to urban centres.
As for financial risks, the group’s prudent financial policies, as demonstrated by its healthy financial position, being in a net cash position over the past two years, have allowed us to undertake such a significant venture. This project is set to be a key revenue driver for Matrix Concepts, complementing our ongoing projects in Sendayan and the Klang Valley.
What is your vision for this 2,400-acre development in MVV 2.0? How will you ensure it will be another success story after your flagship development, Bandar Sri Sendayan?
The MVV development will embody our vision of building sustainable, connected communities that integrate lifestyle, environmental stewardship and economic growth. As we embark on this ambitious journey, our goal is to create a city that not only meets the immediate needs of its residents but also anticipates the future. The design of MVV development will place a strong emphasis on green technology, energy efficiency and smart infrastructure to minimise the ecological footprint while enhancing the quality of life.
Inspired by the success of Bandar Sri Sendayan, the MVV development will build on the same foundational principles of community-centric development, with a focus on enhancing connectivity, accessibility and long-term value for both residents and investors. Through innovative planning, we aim to establish the development as a model of sustainable urban growth in Malaysia, contributing to the nation’s economic and social fabric for generations to come.
What is your remaining development land bank (Malaysia and overseas) and the estimated GDV? Are there plans to acquire additional land or expand into new states or countries?
Matrix Concepts currently holds a development land bank of about 3,347 acres in Malaysia, with an estimated GDV of RM18.1 billion. This includes the first parcel of MVV land recently acquired, with the transaction for an additional 1,000 acres of MVV land expected to be completed and added to the group’s portfolio by 2025.
Internationally, we hold 5.4 acres in the prime commercial area of Pantai Indah Kapuk 2 through a joint venture with local partners in Indonesia. In Australia, our third development, M333 St Kilda, is progressing on 0.6 acres of land.
As part of our long-term growth strategy, we remain actively on the lookout for strategically located land that aligns with our development vision. Internationally, our focus remains on our projects in Indonesia and Australia.
What is Matrix Concepts’ long-term vision for the future of property development in Malaysia and how do you plan to adapt to changing market demands? What is your property market outlook?
Matrix Concepts envisions being a leader in developing holistic and sustainable townships and projects. We are adapting to market shifts by prioritising smart home technology, eco-friendly building practices and community-centric designs. Our long-term vision is to not only meet market demands but to set new benchmarks in urban living.
We anticipate moderate growth in the property sector in 2025, driven by a recovery in consumer confidence and the continued urbanisation of key regions. Challenges such as rising material costs and economic uncertainties will persist, but catalysts like government housing initiatives and technological advancements in property will stimulate demand.
In the next five years, we foresee a greater emphasis on sustainable living, smart cities and the integration of green technologies in developments. We are preparing for these trends by investing in digital infrastructure, enhancing green spaces and adopting smart home systems to cater for evolving buyer preferences.
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