Matrix - Dividend Stock
Matrix Concepts Holdings Berhad (“Matrix”) was listed on the Main Market of Bursa Malaysia on 28th May 2013. The principal business activities comprise four pillars of strength: Property Development, Construction, Education and Hospitality. The Group, helmed by talented and experienced human capital and powered by a dynamic management team, has strategically emerged as one of the top leading developers in Malaysia. The Group's flagship project in Negeri Sembilan provides a self-contained township, integrated residential, commercial developments and green business parks. Matrix has also spread its reach to other high growth areas in Malaysia namely Johor, Klang Valley as well as overseas in Australia. The Group presently has planned projects with a total gross development value (GDV) of RM9.73 billion awaiting development until year 2022. (Mchb.com.my)
In the property sector, this stock has one of the highest dividend yield of 4.91% (last 4Q) as it pays out dividends almost every quarter ! The next ex dividend date of RM 0.0375 is on 2/06/2017. Annual EPS for this stock is 33sens (Last 4Q) and is currently trading at a PE ratio of 8.61x.
On 16 May 2017, on behalf of the Company, Maybank Investment Bank Berhad announced that the Company proposes to undertake a bonus issue of up to 163,941,084 new Matrix Concepts Shares(“Bonus Shares”) on the basis of one (1) Bonus Share for every four (4) existing Matrix Concepts Shares held on the entitlement date to be determined later. (Source : Q4 Report Released 16th May 2017) Key things to note about the price action of this stock is that MATRIX was a gainer on Friday's market despite 770 stocks turning red on Friday. Not only that, this stock reported a 19% decrease in net profit Q-o-Q on 16th May 2017. However, this stock was not thrown down, but rather, was well supported and rallied further to an all time high of RM 2.87 on 23rd May 2017. There were also many transactions made by directors of this company in recent months.Today's price action would be interesting as it is T+4 after the high created on 23rd May. Fundamentally, this stock is strong as it has good prospects as seen in the extracts below. For aggresive traders, this stock also has a warrant which is trading at a 6% premium and a maturity date in 2020. However, investors & risk adverser traders should take note that this stock has already broken out from its long consolidation pattern. As the price now is now trading slightly on the higher side, this stock is suitable for short term traders whereby the first target for this stock is RM 3.00. However, if bearish sentiment prevails in our market, this stock is a fundamentally strong stock with high dividend yield and should be monitored if it falls down at a cheaper price, in which would be suitable for long term investors. Appendix
Source : Matrix Q4 FY 2017 Report released 16th May
Matrix's Dividend Track Record
Source : Matrix Q4 FY 2017 Report released 16th May
Matrix Chart after adjusted Dividends/Splits/Bonus Issues Disclaimer: All information provided is for general sharing and educational purposes only. The author will not be held liable for any investment decisions made. The client is fully aware that all investments carry risk, in which may or may not result in returns. The author is not issuing any buy, hold or sell calls, but rather, this is an analysis provided for general information only. The final investment decision is always yours. This review is in no way promoting any related shares covered in Spark. This is not classified as investment advice, but rather, just a sharing of the author's views for general information. All information provided must not be distributed or shared to other third party users. Doing so would represent piracy, dishonest behaviour and should not be practiced.The author, members of SPARK, clients or any person reading this article may or may not have a stake or shareholding in stocks which are recommended. Members and authors of SPARK reserve the right to buy or sell any stock recommended like any other investor in financial markets. In this trading environment, the author will only feature a range of 0 to 3 charts daily to give the best for valued clients. Chasing or monitoring too many stocks may be detrimental for trading results as it is misleading to investors.
