KUALA LUMPUR, March 18 — RHB Research Institute Sdn Bhd has maintained its “buy” call on Matrix Concepts Bhd with a higher target price (TP) of RM2.35 following a meeting with the company’s management on its joint venture project in Indonesia, last Friday.
In a note today, the research house said Matrix shared the latest update on its plan to develop an Islamic financial district on 3.6 hectares of land located within PIK2 Sedayu Indo City, north of Jakarta.
The company also gave an assurance on the consistent dividend payout ratio during the meeting.
“The Matrix’s Islamic Financial District project with a total gross domestic value (GDV) of US$500 million (RM2.04 billion) will be developed in two phases. The first phase includes the development of iconic twin towers of 26 storeys each with a podium, on 1.4 hectares of land,” it said.
RHB Research said the GDV for the first phase was estimated at US$200 million with a gross margin of 40-50 per cent.
Launching was slated in the second half of this year.
“Management guided that the consortium will likely keep one office block for rental income and put another block up for en bloc sale,” it said.
As for dividend per share (DPS), the research house tweaks its financial year (FY) 20-21 forecast slightly to 13 sen and 14 sen, respectively, as it now expected FY20 DPS to be flat from FY19’s 13 sen.
“Given the dilution from the placement, our revised DPS forecast translates to a payout ratio of 47-48 per cent versus 42-43 per cent in the past. After our revision, the dividend yield is still attractive, at six to seven per cent,” it added.
At 10.40am, Matrix’s share ticked up two sen to RM1.98, with 112,200 shares being transacted. — Bernama
