MATRIX CONCEPTS HOLDINGS BHD
By RHB Research Institute
Buy
Target Price: 5.00
MATRIX Concepts Holdings Bhd’s (MCH) catalyst this year would be the acquisition of land to extend the Sendayan Tech Valley (STV). The acquisition is intended to not only sustain sales of industrial land, but more importantly, to boost job opportunities and hence, create spillover demand for properties in Bandar Sri Sendayan (BSS).
In addition, the completion of the Tentera Udara Diraja Malaysia complex Seremban Toll and new link to KLIA in two to three years’ time will expand the population catchment and improve accessibility to BSS/STV.
RHB Research Institute has initiated coverage on MCH with a “buy” and RM5 fair value.
It says that MCH is not vulnerable to the recent (property) tightening rules due to its its focus on mid-end housing. MCH is one affordable housing player that it believed may follow Tambun Indah and Hua Yang’s footsteps in being re-rated.
The successful sale of Kalista condos in Seremban 2 by IJM Land Bhd at end-2013 is a sign of the strong pent-up demand for mid-end housing within the locality.
RHB said that MCH’s gross margin of about 40% is above the sector’s between 20% and 25% average.
It estimated earnings growth of 14% to 15% for financial year 2014 (FY14) and FY15.
The company’s net cash of 64 sen per share and solid balance sheet will underpin its attractive dividend payout and at the same time provide scope for a bonus issue, it adds.
No comments:
Post a Comment