I believe with the increasing property prices, those who work in KL may opt to buy a comfortable landed house rather in N9 rather than staying at apartment in KL. Based on annual report from Matrix, they manage to capture 40% of house buyers from Klang Valley. Connectivity is not an issue since we have KTM right now (for those who doesnt want to drive) and future High Speed Rail connecting Singapore to KL, which further enhance the connectivity.

Matrix has long benefited from the low land cost, which they acquired from FELDA and the result can be seen from high ROE and EPS. With market cap of more RM 1.0 billion, matrix can command a higher valution i.e PE 10-12x as compared to Mahsing and SPSetia, and this can be translated to a TP of up to RM4.00.

With the recent buy of land worth RM71 million for industrial sector, Matrix has projected to net RM100 million profit, which can last of up 2-3 years. Therefore, we can expect RM30 million of additional profit per year. It is exciting to highlight that, apart from land cost, Matrix only needs to convert the land and develop the infrastructure at minimal cost, and they already have buyers in mind. The profit can be recognized very fast as compared to residential development, and this will enhance their cash flow and further translated to more dividends.

Target Price rm3.90. still holding.