Paramount Corp 1Q net profit surges 87% on higher property sales

• Revenue for the quarter rose 26.2% to RM217.84 million from RM172.61 million in 1QFY2024, boosted by its Petaling Jaya and Penang property developments.

KUALA LUMPUR (May 23): Property developer Paramount Corp Bhd's (KL:PARAMON) net profit surged 87.2% to RM14.4 million in the first quarter ended March 31, 2025 (1QFY2025) from RM7.71 million a year earlier, primarily driven by the improvement in the property segment.

This resulted in a higher earnings per share of 2.32 sen for 1QFY2025 compared with 1.24 sen for 1QFY2024.

Revenue for the quarter rose 26.2% to RM217.84 million from RM172.61 million in 1QFY2024, boosted by its Petaling Jaya and Penang property developments. However, its investment and others segment underperformed due to higher interest costs from a sustainability-linked sukuk and new borrowing to partially fund its investment in Eco World International Bhd (KL:EWINT).

No dividends were recommended for the quarter.

In a filing with Bursa Malaysia on Friday, Paramount said the property segment's revenue for 1QFY2025 was RM205.9 million, 27% higher than the RM161.8 million recorded in 1QFY2024. The largest revenue contributors in the quarter were The Atera development in Selangor, followed by Utropolis Batu Kawan and Paramount Palmera in Penang. On the back of the higher revenue, the property segment's pre-tax profit was 40% higher at RM32.2 million compared with RM23 million in 1QFY2024.

In a statement on Friday, Paramount said it launched RM62.4 million worth of properties in 1QFY2025 as part of its planned RM1.4 billion pipeline for the entire year.

Its group chief executive officer Jeffrey Chew said Paramount will continue to navigate the dynamic landscape with financial discipline, driving sales growth while improving operational efficiencies. It will strive to meet its 2025 sales target of RM1.5 billion along with ongoing projects contributing to the group financial performance for the financial year ending Dec 31, 2025.

The group's unbilled sales stood at RM1.6 billion as at end-March, which will provide near-term visibility on the group's cash flow though the conversion into billings will largely depend on work progress.

Paramount shares closed up one sen or 0.94% at RM1.07 on Friday, giving the group a market capitalisation of RM666.4 million. The stock is slightly up 1.9% so far this year.

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