PETALING JAYA: Matrix Concepts Holdings Bhd is expected to deliver flattish core earnings in the first quarter of financial year 2027 (1Q27), according to UOB Kay Hian (UOBKH) Research.
In a note to clients, the research house said Matrix Concepts’ core earnings could come in at RM60mil to RM65mil for the 1Q27, against RM63mil a year earlier.
This would account for 23%-25% of its full-year (FY27) forecast, it added.
“We believe near-term earnings could be capped by slower progress billings due to the full-quarter impact of higher diesel costs, while revenue recognition from industrial sales is likely to be backloaded.
“Its sales should normalise from the earlier disruption of e-sale and purchase agreement implementation to reach RM400mil, accounting for around 22% of its full-year sales target.”
UOBKH Research expects sales to pick up in the second half of FY27, as the company launches the first block of Levia Residence @ Puchong, with a gross development value of RM356mil.
For FY27, it expects Matrix Concepts to deliver strong double-digit earnings growth.
It projects Matrix Concepts’ FY27 earnings to grow 20.4% year-on-year, supported by the progressive conversion of its enlarged unbilled sales backlog, as well as stronger contributions from high-margin industrial projects.
“We expect industrial revenue recognition to rise to around RM270mil in FY27 from RM68mil in FY26.
“Assuming a 25% net margin, the segment could contribute RM67.5mil, equivalent to 26% of our FY27 earnings forecast.”
The brokerage kept its “buy” call on the stock with a target price of RM1.72 a share.