Matrix Concepts Holdings Berhad - Sale of Land in MVV Techvalley
Wed, 10-Dec-2025 09:24 am
by Research Team • Apex Research

Counter

MATRIX (5236)

Target Price (RM)

1.73

Recommendation

Buy

  • Sale of two plots of land, collectively measuring 8.3 acres in MVV Techvalley, Mukim Labu, Daerah Seremban, Negeri Sembilan, to Bidara Pesona Sdn Bhd (BPSB) for RM24.6m.

  • Land sale supports earnings visibility, with minimal impact in FY26 and recognition tied to stage of works completed in FY27–FY28.

  • Maintain a BUY call with a higher target price of RM1.73, based on a 30% discount to RNAV and supported by a three-star ESG rating.

 

Sale of land. MATRIX’s 85%-owned subsidiary, N9 Matrix Development Sdn Bhd, has entered into separate Sale and Purchase Agreements (SPAs) to sell two vacant agricultural land parcels in MVV Techvalley, part of N9 Matrix’s ongoing industrial development project, to BPSB for a total of RM24.6m (Figure 1). The combined 8.3-acre land, at ~RM68.1 psf, is expected to generate a net profit of around RM7.4m. The transaction is conditional upon N9 Matrix obtaining industrial land conversion and individual titles by 31 Dec 2025, or such later date as may be mutually agreed.

 

Our take.  The land sale is consistent with the Group’s strategy to enhance earnings visibility while the development pipeline remains primarily focused on industrial launches, ahead of the next phase of residential and commercial developments, which are expected to come on stream only from FY29 onwards. The earnings impact will be back-loaded based on the pace of work progress, including subdivision, title award, earthworks and infrastructure, with minimal contribution in FY26 (c. 5%), while the remaining 95% will be recognised in subsequent years (c.50% in FY27 and c.45% in FY28).

 

Earnings revision. We have raised our earnings forecasts by 0.2%/1.3%/1.0%, to RM252.4m/RM272.4m/RM324.3m for FY26/FY27/FY28, respectively. The revisions reflect the progressive recognition from the disposal of the land.

 

Valuation & Recommendation. Following the earnings revision, we maintain our BUY recommendation with a slightly higher TP of RM1.73 (from RM1.72), based on a 30% discount to RNAV and supported by a three-star ESG rating.

 

Risks. Higher-than-expected construction costs, execution delays, potential labour shortages, and adverse changes in economic conditions.

Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.077871 4.111430
EUR 4.800957 4.806968
CNY 0.580107 0.580830
HKD 0.523945 0.527748
SGD 3.158630 3.181638