Pressure has been mounting on developers in terms of selling their projects. 2016 has been a pretty ‘slow’ year. Remember an article earlier about how creative has developers become? Many have started to offer rebates, discounts and many other different attractive promotions. Of course, if you ask me, whether developers of individual sellers, desperation is not yet a word to describe them. Developers are also said to be pessimistic and even our neighbour Singaporean developers are facing a tough time.
It should then be expected that listed developers would start showing worst net profit numbers, right? Well, one has just reported healthy set of net profits. Matrix Concepts Holdings Bhd posted a net profit of RM261.2 million on a revenue of RM912.2 million for the 15 months period ending March 2016. This gives it a net profit of 28.6 percent. (Matrix Concepts changed its reporting period from December 31 to March 31.) This percentage is likely to be one of the highest among listed developers.
Matrix Concepts have unbilled sales stood of RM621.4 million as at March 31, 2016 to be recognised until 2018. For the past 12 months, Matrix Concepts sold RM817.4 million of property sales across its flagship townships in Bandar Sri Sendayan in Negri Sembilan and Bandar Seri Impian in Johor. This is not considered a major developer nor is it on of those huge brands. Its results have however shown that with the right products, developers continue to do well. In brief, demand remain strong because property is a necessity. Let’s keep following all these to understand if the market is really bad or just the sentiment.
written on 20 May 2016
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