Petaling Jaya, 28 February 2024: Paramount Corporation Berhad (Paramount) achieved profit before tax (PBT) of RM130.2 million for FY2023 with a record revenue of RM1.0 billion, which were 24% and 19% respectively higher than that of the previous year.
The Group’s profit attributable to ordinary equity holders of the company in FY2023 shot up by 38% to RM82.8 million (FY2022: RM60.2 million).
With that, Paramount declared a second interim dividend of 4.0 sen for FY2023 (FY2022: 3.5 sen final dividend), which would be paid on 27 March 2024 to shareholders who are in the record of depositors on 13 March 2024.
For the benefit of shareholders, the Board of Directors of Paramount has resolved to adopt the practice of declaring second interim dividends, if any, as opposed to proposing final dividends, to enable shareholders to receive the dividend earlier.
Paramount Group CEO Jeffrey Chew said, “We are pleased with Paramount’s FY2023 results. Paramount achieved double-digit growth in revenue and PBT for the third year. We also touched RM1 billion in revenue for the first time. It was also our second consecutive year of achieving sales above RM1 billion.”
“The property division’s strong performance in 2023 coupled with the improvement in the financial performance of our other businesses showed the Group’s ability to thrive in an environment of moderate growth,” he said.
“Our property division achieved RM1.1 billion sales despite a 27% lower launched Gross Development Value (GDV) of RM886 million (FY2022:RM1.2 billion). The encouraging property sales achieved will contribute positively to the Group’s revenue as construction of these properties progresses.
“The top three contributors to FY2023 sales were Sejati Lakeside 2 and The Atera developments in Selangor, and Utropolis Batu Kawan development in Penang,” he said.
Chew said the unchanged overnight policy rate at 3.0% coupled with the expected expansion of the Malaysian economy and improving labour market boded well for the property market in 2024.
He said Paramount Property would capitalise on its reputation as the People’s Developer and launch seven projects (including new phases of existing projects) in 2024 with a projected GDV of RM2.4 billion at its existing project locations in Penang, Kedah and the Klang Valley.
The three largest launches (in GDV) for FY2024 are The Ashwood (high rise condominiums, duplexes, and low-rise villas at the prestigious U-Thant enclave in Kuala Lumpur), Phase 2 of The Atera (transit-oriented development project in Petaling Jaya, situated next to the Asia Jaya Light Rail Transit Station) and a new phase of high rise residential development with commercial components at Utropolis Batu Kawan, Penang.
The Group’s unbilled sales as at 31 December 2023 stood at RM1.4 billion, and would provide some visibility on the Group’s cashflow in the near term.
Meanwhile, the coworking division scored its first full year profit with RM2.0 million PBT compared to a loss of RM0.6 million in FY2022. The coworking division also expanded its space by 37,000 sq ft in 4Q2023, comprising the expansion of its Tropicana Gardens space and a new space taken over at Ken TTDI at Taman Tun Dr Ismail, Kuala Lumpur.
“We are also bullish on the coworking business, having just opened another space in January 2024 and look forward to further expansion,” said Chew.
4Q2023 results
Group revenue was 26% higher at RM309.4 million while PBT and profit attributable to ordinary equity holders of the company for the 4Q2023 were RM38.4 million (4Q2022: RM33.0 million) and RM28.2 million (4Q2022: RM18.9 million), which were 16% and 49% higher than that of 4Q2022.
The property division’s 4Q2023 revenue was 26% higher at RM299.1 million (4Q2022: RM237.4 million) with the Sejati Lakeside 2 and Berkeley Uptown developments in Selangor, and Utropolis Batu Kawan development in Penang, as the top three revenue contributors. Despite the higher revenue, PBT for 4Q2023 was 7% lower at RM32.1 million compared to RM34.4 million recorded in 4Q2022 that was boosted by cost savings realised from certain completed projects.
The coworking division’s revenue for 4Q2023 was RM3.5 million, 25% higher than the same period last year mainly attributed to the higher revenue from The Starling and Naza Tower spaces coupled with the newly opened space at Ken TTDI. The coworking division recorded PBT of RM0.9 million in 4Q2023 compared to Loss Before Tax (LBT) of RM0.1 million in 4Q2022.
