Profit attributable to shareholders doubled to RM11.6 million
Petaling Jaya, 29 May 2023: Paramount Corporation Berhad (Paramount) continued to deliver solid results, with a 60% increase in Profit Before Tax (PBT) at RM23.3 million for the first quarter of 2023 (1Q2022: RM14.6 million) on the back of a 16% percent increase in revenue at RM194.6 million (1Q2022: RM168.1 million).
Paramount Group CEO Jeffrey Chew said the Group’s profit attributable to ordinary equity holders of the company more than doubled to RM11.6 million from RM5.0 million recorded in 1Q2022.
“With a larger base of on-going projects in 1Q2023, compared to the previous year, PBT for the property division was 41% higher at RM29.3 million compared to the RM20.7 million recorded in 1Q2022,” Chew said.
The property division’s revenue for 1Q2023 was RM185.8 million (1Q2022: RM163.9 million) with Utropolis Batu Kawan in Penang, Bukit Banyan in Kedah and Berkeley Uptown in Selangor, as the top three revenue contributors.
“We are also encouraged by our first quarter sales. Our property sales for 1Q2023 was RM292 million, which was 88% higher than of the same period in 2022 of RM155 million, driven mainly by launches in the third and fourth quarters of 2022 as well as that in the first quarter of 2023,” said Chew.
These launches include the freehold serviced apartments of Savana at Utropolis Batu Kawan in Penang and the freehold landed homes in Bukit Banyan, Kedah.
Chew also pointed out that the growth in sales was partly due to 1Q2022 being a low base as the Malaysian economy had yet to fully reopen last year.
Chew was upbeat about the demand for the rest of 2023, saying that although rising cost and interest rate hike could dampen consumer sentiment, the expected expansion of the Malaysian economy and improving labour market would be conducive for property demand.
“Riding on the strong sales momentum achieved in 1Q2023, the Group targets to launch properties with an estimated gross development value of RM1.1 billion for the remaining nine months of 2023,” said Chew.
Notable launches for the nine months are Paramount Palmera Industrial Park in Bukit Minyak, Penang (a strategically located light industrial development), a new residential development at the prestigious U-Thant enclave, Kuala Lumpur (high-end serviced apartments located next to The Atrium) and Phase 2 of Sejati Lakeside 2 landed homes in Cyberjaya (non-strata double storey semi-detached homes).
He said the Group’s unbilled sales of RM1.4 billion as at 31 March 2023 would provide some visibility on its cashflow in the near term but was contingent on the construction progress of projects. As at 31 March 2023, the Group’s undeveloped land bank stood at 525.8 acres.
The coworking division recorded its maiden PBT in 1Q2023 at RM0.1 million compared to Loss Before Tax (LBT) of RM0.3 million in 1Q2022. Revenue for 1Q2023 was RM2.9 million, 32% higher than the same period last year of RM2.2 million, mainly attributed to the higher revenue from all Co-labs Coworking outlets.