Updates

Paramount On Strong Footing, Set For Multi-Year Growth

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PETALING JAYA: Paramount Corp Bhd (PCB) is expected to sustain multi-year growth with property sales, asset monetisation and investment in digital enterprises as the catalysts.

“With record unbilled sales of RM1.2bil and annual property sales of over RM1bil from financial year 2022 (FY22) onwards, the group is expected to post a core earnings compounded annual growth rate (CAGR) of 42% for FY21 to FY24,” said TA Research in a report.

As at June 30, 2022, PCB has a remaining land bank of about 500 acres, which is estimated to have a gross development value (GDV) of RM6.7bil.

“This does not include four land acquisitions totalling 125 acres that are pending completion, which management guides for a potential GDV of RM1.8bil,” said the research house.

In terms of property sales, PCB has set a sales target of RM1bil for FY22, a 24% increase year-on-year, supported by new launches in the pipeline.

“This is underpinned by new launches worth RM1.3bil, a 48% increase over last year. Of the RM1.3bil property launches planned, 32% or RM408mil would be from the group’s existing projects in Sungai Petani and Sepang.”

TA Research said the group has also outlined property launches worth RM872mil for its new developments in Shah Alam, Cyberjaya and Petaling Jaya,

“From 2014 to 2021, PCB’s property sales had grown at a CAGR of 14.8%, outperforming Malaysia’s primary market residential property transactions that had contracted by 2.1% over the same period,” it said.

For the first half of 2022, the group posted RM452mil in new sales, attributable to better take-up rates for ongoing projects. Property sales during the period made up 43% of the group’s full-year sales target.

TA Research also projected PCB’s losses in its co-working segment to narrow in FY22 to FY23 and turn around in FY24, having a seat occupancy of up to 70% from its current 50%.

Another catalyst for PCB’s growth momentum is asset monetisation. Presently, TA Research projects that the group is looking to monetise RM700mil worth of assets.

This includes the group’s proposed disposal of its remaining stake in the K-12 education business. In PCB’s announcement, the proposed disposal is for a total cash consideration of RM120mil and is expected to be completed by the end of the fourth quarter of this year.

Source

Paramount Shows Improved Financial Performance,
Declares 2.5 sen Interim Dividend

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Petaling Jaya, 26 August 2022:  Paramount Corporation Berhad (Paramount) reported a 2Q2022 revenue of RM202.4 million (2Q2021: RM127.4 million) and a profit before tax (PBT) of RM15.6 million (2Q2021: RM10.2 million), which are 59% and 53% higher respectively, compared to the same period last year. Hence, the profit attributable to ordinary equity holders of the company was also higher at RM9.1 million (2Q2021: RM1.6 million).

As for its six months results, the Group’s revenue rose by 33% to RM370.5 million (6M2021: RM279.3 million) while PBT went up by 44% to RM30.2 million (6M2021: RM21.0 million) Profit attributable to ordinary equity holders of the Company for 6M2021 rose by 260% to RM14.1 million (6M2021: RM3.9 million).

With that, the Board of Directors declared a single tier interim dividend of 2.50 sen per share (2021: Nil) for the financial year ending 31 December 2022, which will be paid on 22 September 2022 to shareholders whose names appear on the Record of Depositors on 12 September 2022.

Paramount Group CEO Jeffrey Chew said, “I am pleased that the Group has delivered overall improvement in revenue and earnings for the first half of the year. This was despite challenges including the escalation of prices on building materials and shortage of construction workers, which are expected to ease when supplies normalise in the near term.”

Property division

For 2Q2022, the property division recorded a revenue of RM197.0 million, which was 57% higher than that of the corresponding quarter last year at RM125.3 million. This was on the back of a larger base of ongoing development despite work progress being disrupted due to a shortage of construction workers. The top three revenue contributors were Utropolis Batu Kawan in Penang, Sejati Lakeside in Cyberjaya, Selangor and Bukit Banyan in Sungai Petani, Kedah.

Despite the higher revenue, the property division posted a marginally lower PBT of RM18.7 million compared to RM20.6 million in 2Q2021, mainly because cost savings realised from certain completed projects were included in last year’s PBT.

For 6M2022, the property division recorded a revenue of RM361.0 million, which was a 31% increase compared to the previous period (6M2021: RM274.8 million) and a PBT of RM39.4 million, a 10% improvement from the previous period. (6M2021: RM35.7 million)

Despite fewer property launches, 6M2022 sales was 38% higher at RM425 million (6M2021: RM309 million) supported by a 113% surge in 2Q2022 sales after the full reopening of the economy and also due to the low base last year.

As at 30 June 2022, the division has unbilled sales of RM1.2 billion.

Coworking division

The coworking division recorded improved financial results with higher revenue and lower loss before tax in the first six months of 2022 compared to a year ago.  This was on the back of higher occupancy rates across all five Co-labs Coworking outlets.

Prospects

Chew said the Group was optimistic that its financial performance for the second half of this year will surpass that of the first half.

“With the encouraging sales momentum achieved in 2Q2022, the Group looks forward to launching five projects (including new phases of existing projects) with a total estimated gross development value of RM1.1 billion in the second half of this year,” he said.

He said new projects lined up include Arinna, Kemuning Utama in Shah Alam (low-density high rise residential development with smart home features), The Atera in Petaling Jaya (transit-oriented mixed development situated next to the Asia Jaya Light Rail Transit Station) and Sejati Lakeside 2 in Cyberjaya (non-strata landed homes by a 45-acre lake).

He also said the Group’s coworking and workspace solutions businesses are also well positioned to capitalise on the opportunities arising from the spur of economic activities and the adoption of hybrid office set up.

“The Group will continue to maintain strong financial resilience and optimise its operations for better efficiencies. This includes increasing the use of industrialised building systems (IBS) to reduce reliance on labour over the longer term,” he said.

He said the Group will continue to explore opportunities to unlock the value of its real estate assets and investments to enhance return on capital employed while creating long-term shareholder value.

Source

Paramount Property Bagged Three Awards at the StarProperty Awards 2022

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Paramount Property bagged three awards at the StarProperty Awards 2022 Gala Dinner held at Shangri-la Hotel, Kuala Lumpur on 24 August 2022.  This is the seventh  consecutive year that StarProperty has been honouring outstanding property developers who have contributed to the success of the real estate industry.  Since then, Paramount Property has been a recipient of these awards every year.

This year, Paramount’s winning projects are:

  • Sinaran Residences at Utropolis Batu Kawan, Penang which won Excellence in the ‘Family friendly’ award category for Highrise
  • The Atrium at Kuala Lumpur which garnered an Honour in the ‘Close to Home’ award category

Paramount was also accorded the All Stars Award, which acknowledges performing property developers.

According to Paramount Property CEO, Chee Siew Pin winning top awards confirms that Paramount Property is moving in the right direction and solidifies our reputation as a trustworthy brand that delivers.

“This has given us a much-needed boost and encouragement to continue doing what we do as The People’s Developer. As we strive to create spaces which make lives better for all, I would like to acknowledge the Paramount Property team whose hard work and commitment has been crucial in making this happen,” said Chee.

Source

Paramount Maintains Positive Outlook from Improved Performance

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PARAMOUNT Corporation Berhad (Paramount) posted RM5.024 million net profit for the quarter of the year from RM2.297 million a year ago.

Its revenue increased to RM168.1 million as compared to RM151.8 million posted in 1Q21.

Its property division for 1Q22 revenue was RM163.9 million, a 10% increase compared to that of the same period last year of RM149.6 million, which was driven by ongoing development projects such as ATWATER in Petaling Jaya, Sejati Lakeside in Cyberjaya, and Bukit Banyan in Sungai Petani.

On the back of the higher revenue coupled with the realisation of cost savings from certain completed and near-completion projects, the coworking division recorded a lower loss before tax (LBT) of RM0.3 million compared to a LBT of RM1.1 million in 1Q2021.

Paramount Group CEO Jeffrey Chew said, “The group has delivered an overall improvement in revenue and earnings as the country moves into endemicity.”

“The improved financial performance in 1Q2022 compared to the same period last year was mainly due to a higher profit contribution from the property division with fewer operational disruptions this quarter compared with the corresponding period last year.”

Six projects (including new phases of existing projects) are targeted for launch throughout the year with an estimated gross development value of RM1.3 billion.

Among the new projects lined up are the Arinna Kemuning Utama smart homes in Shah Alam; The Atera, a transit-oriented development project in Petaling Jaya situated next to the Asia Jaya Light Rail Transit Station; and Sejati Lakeside 2 landed homes in Cyberjaya.

“Despite the recent OPR hike of 25 basis points, the prevailing low-interest environment remains conducive for property demand. Malaysians with financial means will still look to property as a hedge against inflation.”

“With rising prices of properties, especially in established urban areas where land is getting scarce, coupled with the increase in building material costs, there are opportunities for capital gains in the long term,” said Chew.

“That said, we are mindful that the recovery of the property sector could be dampened by uncertainties related to the COVID-19 virus, any aggressive interest rate hike, the rising cost of living and lower spending power,” he concluded.

Source

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