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Matrix Concept Holdings Bhd''s Shares Up On JV News


Matrix Concept Holdings Bhd''s Shares Up On JV News

KUALA LUMPUR, April 14 –– Matrix Concept Holdings Bhd’s shares rose in the morning session today on news that it has signed a joint-venture (JV) agreement with two Japanese partners to build a manufacturing plant in Bandar Sri Sendayan, Negeri Sembilan.

At 11.57 am, the shares added one cent to RM2.55 with 215,900 shares traded.

The agreement was signed by Matrix Concept’s unit, Matrix IBS Sdn Bhd, Nissin Ex Co Ltd and Nihon House Corp, with a holding percentage of 80:12:8 respectively.

In a research note today, Hong Leong Investment said, the parties planned to set up a plant to manufacture pre-fabricated building materials using the Industrialised Building System (IBS) technology.

The plant would cost RM30 million, excluding land acquisition cost, it said

“We are positive on this development as Matrix Concept stands to benefit from the transfer of IBS technology from both the reputable Japan counterparts, potential cost savings, better-built quality and improve efficiency,” it said.

It said the company would also benefit from tax incentive from the investment.

Going forward, the investment bank said, the outlook for Matrix Concept remained favourable as it was on track to achieve its RM1 billion sales target after hitting RM837 million sales in its nine-month financial year 2017 period.

The current unbilled sales stood at a historical high of RM904 million, it said.

The investment bank has maintained a ‘buy’ call on Matrix Concept at a target price of RM2.89.

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