| IPO Maybank : 'Subscribe' for Matrix Concept, TP RM2.88 |
| Written by Kamarul Anwar of theedgemalaysia.com |
| Wednesday, 15 May 2013 12:55 |
In a note today, Maybank analyst Tan Jwin Hon said Matrix Concept's initial public offering (IPO) shares which will be listed on Bursa Malaysia on May 28 this year are attractively priced at RM2.20 each. This values Matrix Concept at a price-earnings ratio (PER) of 5.3 times for financial year ending December 31, 2013 (FY13), Tan said. Its peer average PER comes in at 7.8 times. Maybank has a target price of RM2.88 for Matrix Concept shares. “With a dividend-payout policy of at least 40%, Matrix offers an appealing FY13 and FY14 dividend yield of 7.3% and 9.1% respectively. "We understand that investors would also be entitled to the final FY12 dividend payment of about 10 sen in June,” said Tan. He also said Matrix Concept's earnings will be sustained till 2019 as the company has 620ha (1,550 acres) of land. “We expect earnings growth of 21% and 16% in FY13 and FY14, driven by RM445 million in unbilled sales, about RM800 million worth of annual sales launches and take-up rates of about 75%,” said Tan. |