not vested
Matrix Concepts has been consistently outperforming its larger peers with record breaking property sales. This is despite having to operate in a challenging property market.
DBS notes that Matrix Concepts has continued to chalk up impressive sales at its flagship developments in Negeri Sembilan at lucrative margins, thanks to its inherent competitive advantage of cheaper land bank.
Among the developments, Bandar Sri Sendayan is the jewel in its crown. Its properties at Bandar Sri Sendayan are selling at RM200 psf despite a low average land cost of RM7 psf.
Matrix Concepts is sitting on a literal cash cow with significant profit margins. Despite having sustainable earnings visbility and high dividend yield (6.5 percent),
Matrix Concepts continues to be trading at an undemanding valuation of 6 times FY20 price-to-earnings.
BUY, TP RM2.40; Current Share Price RM1.90
Source: Aspire