This article first appeared in The Edge Malaysia Weekly on October 6, 2025 - October 12, 2025

For the second year running, Matrix Concepts Holdings Bhd (KL:MATRIX) took home The Edge Billion Ringgit Club (BRC) corporate award for highest return on equity (ROE) over three years among property companies below RM3 billion market capitalisation.

Since first clinching the award in 2017, the developer has won it every year except in 2023. This year is its eighth win in the ROE category alone. It also bagged the awards for highest returns to shareholders over three years in 2019 and highest growth in profit after tax over three years in 2021.

Established in 1996 and listed on Bursa Malaysia in 2013, Matrix Concepts comprises four main divisions: property development, healthcare, hospitality and education. Its first project was Taman Bahau in Negeri Sembilan but its flagship development is the award-winning township Bandar Sri Sendayan, which was launched in 2006 and now includes other developments such as Ara Sendayan, Tiara Sendayan, Eka Heights and Laman Sendayan.

The developer has set some ambitious targets for itself, on top of a RM1.6 billion property sales target for the financial year ending March 31, 2026 (FY2026), out of which RM1 billion is expected to come from Bandar Sri Sendayan.

As part of a five-year plan, the group is looking to generate 30% of its revenue from outside Negeri Sembilan; it has ventured into the Klang Valley and Johor Bahru. Its strategic expansion plan includes establishing a global presence to showcase its expertise as a trusted property developer and construction company. It has a current land bank of about 3,170 acres in Malaysia; Melbourne, Australia; and Jakarta, Indonesia.

In Australia, following the fully-sold M Greenvale project in Melbourne, which was launched in July 2022, the group is now focused on its third and largest Australian project to date, M333 St Kilda. The eight-storey mixed-use project near Melbourne’s landmark Tribeca-style bayside suburb is slated for completion in FY2026.

In Indonesia, Matrix Concepts in FY2025 marked a major milestone with the completion of its first development, Menara Syariah twin towers in Jakarta. This contributed significantly to its FY2025 performance. It expects to launch another project in the archipelago.

As at March 31, 2025, the group’s unbilled sales stood at RM1.46 billion. In FY2025, Matrix launched projects comprising 2,500 units of properties with a cumulative value of RM1.45 billion (FY2024: RM1.14 billion) and boasting average take-up rates of 76.2%.

Its shares closed at RM1.36 at the BRC membership cut-off date of March 28, 2025, and went on to reach a high of RM1.426 on May 5 before closing at RM1.31 on Aug 29 to give it a market capitalisation of RM2.46 billion.

During the BRC awards evaluation period between FY2021 and FY2024, its net profit contracted by 2.33% a year over three years, with its FY2024 net profit of RM244.3 million up 17.9% year on year (y-o-y) from RM207.2 million in FY2023 but below the RM262.2 million booked in FY2021.

Still, Matrix Concepts’ weighted ROE over three years stayed above industry peers in the same BRC award category at 11.29% between FY2022 and FY2024, rising from 11.04% in FY2022 to 11.8% in FY2024.

In FY2025, however, net profit declined 12% y-o-y to RM214.1 million even as revenue slipped 14.4% to RM1.2 billion from RM1.34 billion in FY2024.

The company continued to pay dividends four times a year but total dividend payout was reduced to RM116.37 million (7.95 sen per share) in FY2025 compared with RM125.14 million (10 sen per share) in FY2024.

The developer secured new property sales of RM1.38 billion for FY2025, with Sendayan Developments contributing RM1.04 billion, or 75.6% of total new sales.

Its next catalytic development is Malaysia Vision Valley (MVV) City in Negeri Sembilan, where the developer will take the lead in the partnership with the Negeri Sembilan government’s NS Corporation. The 2,382-acre MVV City, with a gross development value of about RM15 billion, is slated to be launched by end-FY2026. In close proximity to the planned high-speed rail project, MVV City will be built over 12 years and comprise about 15,000 residential units, 1,000 acres of industrial space, 15,000 residential units and a 174-acre commercial lot.

In a May 29 note, Apex Securities raised its earnings forecast by 6.1% to RM243.2 million for FY2026 to reflect stronger contribution from previously delayed revenue recognition, as well as better take-up rates from ongoing as well as upcoming project launches. Apex Securities upgraded its recommendation to “buy” with a higher target price of RM1.53, from RM1.35 previously.

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