source: [Blackspy fundamentals]
About Matrix Concepts
It has two major land parcels in Bandar Sri Sendayan (5233 acres or 2093ha) located in Seremban and Taman Seri Impian in Kluang, Johor (900 acres). Identifiable remaining GDV of rm8.3 billion provides visibility of up to 2022. Its main drivers are its township developments and Sendayan TechValley.
Seremban is part of the Greater Klang Valley-KL conurbation and this, Bandar Sri Sendayan has indirectly benefited from the spillover effects due to the significant property price increase in the Klang Valley. Sendayan TechValley has also attracted FDIs which will spur economic activities in the area.
Matrix’s demand profiles leave them relatively unscathered from the measures to tighten the property market.
Its land parcels are largely locked at favourable low prices, at around 5% to 6% of land cost/GDV ratio. Hence lower holding cost for the group means they reap higher gross margins of 40% to 45% compared to the average gross development margins of 20% to 30%. It also provides them more pricing flexibility against the competitors which helps combat the property cooling measures.
As the nine months ended Sept 30 2013 the company was in a net cash position of 0.36 times post its IPO. The group has about rm124 million (combination of cash and debt) to use for further landbanking in Seremban.
Matrix has a dividend policy of 40% dividend payout policy and is the only developer to pay out quarterly dividends so far (Nov 2013), which reiterate its strong cash flow position.
Additionally its yields are attractive of 9.4% and 7.8% and PER of 6.6 times and 5.8 times for FY13E and FY14 respectively.
No comments:
Post a Comment