Advertisement

Thursday, October 06, 2016

MATRIX: At a New High


Background

Matrix Concepts Group Berhad ('Matrix') is involved in property development, education, clubhouse operator and construction. It was listed on Bursa Malaysia in June 2013. Currently the group has 2 major on-going township developments, namely Bandar Sri Sendayan in Seremban, Negeri Sembilan and Bandar Sri Impian in Kluang, Johor.

Matrix's Sendayan Icon Park, Seremban and Taman Seri Impian, Kluang

Technical Outlook
MATRIX broke above its all-time high of RM2.56 last week. With this upside breakout, Matrix will recommence its uptrend which dates back to September 2013.


Chart 1: Matrix's weekly chart as at Oct 5, 2016 (Source: Chartnexus)

Recent Financial Performance

Matrix's last quarterly results was in QE30/6/2016, which shows its net profit rose 8% q-o-q or 74% y-o-y to RM52 million. Its revenue is mixed- down 7% q-o-q but rose 63% y-o-y to RM196 million.


Table: Matrix's last 8 quarterly P&L


Chart 2: Matrix's last 14 quarterly P&L

Valuation

Matrix (closed at RM2.63 yesterday) is now trading at a trailing PER of 9.1 times (based on last 4 quarters' EPS of 29 sen). Its price to book is at 1.62 times (based on NTA of RM1.62 per share as at 30/6/2016). Matrix paid out dividend totaling 19.4 sen n FY2016, which translates into a DY of 7.4%. Overall, Matrix is deemed fairly valued.

Conclusion

Based on satisfactory financial performance, fairly valuation & bullish technical outlook, Matrix could be a good stock for a trading BUY.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

No comments: