Matrix Concepts records 9.3% higher new property sales
Matrix Concepts Holdings Bhd’s revenue for the first quarter of its financial year ended June 30, 2020 (1Q21) stood at RM162 million, as compared to RM248.5 million a year ago; while net profit dipped to RM31.1 million, versus RM54.5 million previously.
In a press statement today, the property developer said this was attributed mainly to lower contribution from the property development segment and investment properties owing to the halt in operations imposed under Movement Control Order (MCO) by the Malaysian government since March 18, 2020.
Of total 1Q21 revenue, contribution from residential properties decreased 33.2% to RM139.5 million, while commercial properties reduced 90.5% to RM2.8 million. Revenue from industrial properties amounted to RM13 million, while contribution from investment properties was 32.3% lower at RM6.7 million.
Matrix Concepts chairman Datuk Mohamad Haslah Mohamad Amin (pictured) said developers are facing tough market conditions during the first quarter of FY2021, the MCO due to the Covid-19 pandemic and a halt on construction activities for almost two months have impacted the industry.
Despite the challenging market conditions due to the Movement Control Order (MCO) period, Matrix Concepts has seen the value of new property sales increase 9.3% year-on-year (yoy) to RM350.3 million in 1Q21, as compared to RM320.4 million in the same period a year ago.
The company said the sales performance was underpinned by strong demand for the properties in Sendayan in Seremban and Bandar Seri Impian in Johor.
“This was achieved on the back of greater customer engagement despite the public movement restrictions, enabled by the group’s online sales and marketing platforms. This also helped cushion the inactivity in the group’s construction, hospitality, education, and healthcare divisions from April to May 2020,
“Through the use of digital solutions, we were able to ensure smooth operations and provide greater convenience to our customers. Combined with our focus on providing a strong value proposition in our property launches, we achieved higher new sales in 1Q21 despite the MCO and weaker economic sentiment in Malaysia,” said Mohamad Haslah.
He added that the company is expediting the construction progress of ongoing developments to recover from the productivity loss during the MCO period, and target to record positive performance for FY2021.
Meanwhile, Matrix Concepts launched new projects worth RM258.5 million in gross development value (GDV) in 1Q21, and is on track to achieve its launch target of RM1 billion GDV in the FY21. Some of the launches were the Clover @ Resorts Residence and Floria @ Tiara Sendayan in Sendayan Developments, Seremban.
Notably, Floria @ Tiara Sendayan, featuring 246 homes with prices starting from RM498,888, achieved near 100% take up within one month of its launch.
Matrix Concepts’ 1Q21 ongoing GDV increased 5.5% to RM2.7 billion as at 30 June 2020 from RM2.5 billion as at the financial year ended 31 March 2020 (FY2020). Unbilled sales rose to RM1.18 billion as at 30 June 2020 compared to RM1.02 billion as at end-FY2020, to sustain earnings recognition for the next 15 months.