It expects the group’s second quarter ended Sept 30 (Q2 FY2024) earnings to be stronger on a yearly basis due to a pick-up in construction progress at its project sites. The company is scheduled to release its second quarter earnings by the end of this month.

MIDF is also forecasting FY2024 earnings to come in at RM256 million, which represents growth of 15.8% year-on-year (y-o-y).

The research house is positive on Matrix Concepts based on its status as an established township developer in Seremban that focuses on affordable homes, its good track record of dividend payouts, better earnings prospect from FY2024 onwards, and healthy balance sheet.

In addition, MIDF also sees near-term catalysts from its Indonesian property project and landbank expansion in Labu, Negeri Sembilan.

It notes that demand for its landed houses in Bandar Sri Sendayan, Seremban, remains resilient. “New sales are expected to be stable on a quarterly basis which will be on track to hit the management’s new sales target of RM1.3 billion,” it said.

MIDF expects the dividend payout in Q2 FY2024 to be on track to meet its dividend payout projection of 9.8 sen per share for FY2024.

“That translates into an attractive dividend yield of 6%,” it said.

MIDF is also reassured on the stable prospects of the group’s Indonesian property venture. It is developing the Menara Syariah Twin Towers at the Islamic financial district of Pantai Indah Kapuk 2 (PIK 2), in Jakarta.

The project is developed by PT Fin Centerindo Satu, a joint company venture between Matrix Concepts and Indonesian companies namely Agung Sedayu Group, and Salim Group. Matrix Concepts holds a 30% stake in the JV.

The project, with a gross development value (GDV) of RM1 billion, is expected to be fully completed by the end of this year. The group is planning to either sell or keep Menara Syariah as investment properties, MIDF said.

Matrix Concepts’ shares ended 2 sen or 1.25% higher at RM1.62, valuing the company at RM2.03 billion.