PETALING JAYA, 21 February 2025: Paramount Corporation Berhad (Paramount) ended FY2024 on a strong note, recording a profit before tax (PBT) of RM156.9 million, a 20% increase from FY2023. The performance was supported by RM1 billion in revenue, a milestone that Paramount has achieved for the second consecutive year.
Meanwhile, the Group’s full year profit attributable to ordinary equity holders of the company rose by 24% to RM102.4 million (FY2023: RM82.8 million). The company declared a single tier third interim dividend of 1.5 sen per share, which will be paid on 21 March 2025. Together with the earlier two interim dividends of 3 sen each for FY2024, the total dividend for FY2024 is 7.5 sen (FY2023: 7 sen).
Paramount Group CEO Jeffrey Chew said Paramount finished strong for FY2024, with record property sales of RM1.4 billion and unbilled sales of RM1.6 billion.
“These achievements underscore Paramount’s understanding of its customers and the evolving market, and in its ability to design and build properties that match their needs,” he said.
“Paramount Property has doubled its operations over the last five years, growing its annual property sales of RM770 million in 2020 to the current record-breaking RM1.4 billion of 2024.
“Our RM1 billion sales for the third consecutive year also sets the stage for sustained growth. Sales is converted to revenue when the property is constructed, typically ranging from two to four years. Paramount Property’s revenue for FY2024 was RM965.3 million,” he said.
Chew added, “In 2024, we reached a new strategic milestone in expanding our income from outside Malaysia and beyond Asia. In May 2024, we acquired a strategic stake of 21.54% in Eco World International Berhad (EWI), a move that has already contributed positively to the Group’s FY2024 financial performance, through the dividends. In fact, the acquisition was recognised as the best share placement of 2024, a win for all parties involved.”
“The key contributors to our better FY2024 financial results were the improved PBT of our property segment, as well as the contribution from our investment in EWI, captured in the investment & others segment. Our coworking segment’s PBT was lower for FY2024 as FY2023 results included a reversal of impairment loss for the Naza Tower space,” he said.
Review of 4Q2024
Group
Group revenue improved by 17% year-on-year to RM361.1 million (4Q2023: RM309.4 million) while PBT went up by 86% to RM71.3 million (4Q2023: RM38.4 million).
The stronger results were primarily driven by stronger performance by its property division and contribution from the Group’s investment in EWI.
Property segment
The property segment recorded an 8% increase in revenue to RM322.8 million in 4Q2024 (4Q2023: RM299.1 million), with the largest revenue contributors being Sejati Lakeside 2 development in Selangor, Utropolis Batu Kawan development in Penang and The Atera development in Selangor.
Backed by higher revenue and changes in product mix, with more commercial and industrial products, the property segment’s PBT was 30% higher at RM41.6 million (4Q2023: RM32.1 million).
Coworking segment
The 4Q2024 coworking segment’s revenue of RM8.7 million was 153% higher year-on-year (4Q2023: RM3.5 million), led by higher contribution from Scalable Malaysia, a one-stop workspace solution provider.
The expanded coworking space at IOI Mall Damansara (formerly known as Tropicana Gardens) in Selangor and the two new spaces at Ken TTDI and The Five in Kuala Lumpur also contributed to the segment’s improved revenue. Its 4Q2024 PBT at RM0.6 million was, however, lower than the RM0.9 million in 4Q2023 as the latter was boosted by the reversal of impairment loss for the Naza Tower space.
Investment & Others
The segment achieved a revenue of RM33.6 million (4Q2023:RM7.2 million), mainly boosted by the dividend income from EWI, coupled with higher revenue from Mercure Kuala Lumpur Glenmarie, a four-star hotel, and Dewakan, Malaysia’s only two-Michelin starred restaurant and sole recipient of a green star. 4Q2024 PBT for the segment stood at RM29 million (4Q2023: RM5.5 million).
Moving forward
Chew said the Group is optimistic about its prospects for 2025 backed by its unbilled sales and a property sales target of RM1.5 billion.
This optimism is supported by Paramount’s 2025 pipeline launches of RM1.4 billion GDV across eight projects (including new phases of existing projects) and RM1.8 billion worth of properties that are currently under construction or completed and are for sale.
Chew said Paramount had signed a sales and purchase agreement in December 2024 to buy a piece of 4.5 acres of leasehold land with buildings on it, at the U-Thant area in Kuala Lumpur. The transaction is expected to be completed in the first half of 2025.
“We are hoping to replicate the success of The Ashwood given their proximity,” he said.
“On top of that, Co-labs Coworking is looking at opening two new spaces in 2025. As for F&B, we will be launching another restaurant, Bidou, a spin-off from Dewakan,” he said.
He said Mercure KL Glenmarie and F&B outlets are expected to benefit from continuous economic growth and anticipated growth in tourism activities ahead of Visit Malaysia 2026.
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