Paramount cuts sales target to RM1.2b amid market headwinds

• The group declared an interim dividend of three sen per share, to be paid on Sept 18. For the first six months of 2025 (6MFY2025), Paramount’s net profit came in at RM36.21 million, up 13.4% from RM31.94 million in 6MFY2024, as cumulative revenue rose 11.1% to RM450.38 million from RM405.55 million. 

KUALA LUMPUR (Aug 20): Paramount Corp Bhd (KL:PARAMON) has lowered its full-year sales target and scaled back its planned project launches, in a move reflecting the moderating economic outlook and persistent property market challenges, as its second-quarter net profit fell 10.15% year on year.

The property developer announced in a bourse filing on Wednesday that its 2025 sales target has been trimmed to RM1.2 billion from RM1.5 billion, while its launch pipeline has been reduced to RM1 billion from RM1.4 billion.

Citing data from the National Property Information Centre, Paramount noted that residential property transactions in the first quarter of 2025 saw a 5.6% drop in volume and a 2.8% decrease in value, year on year.

"The market faces headwinds from geopolitical tensions, newly imposed US tariffs on Malaysian exports, an expanded sales and services tax, and upcoming fuel subsidy reforms, all of which may pressure household finances and weaken buyer sentiment," the group said.

"Despite these challenges, the group is focused on optimising sales performance and enhancing operational efficiency to maintain resilience in this evolving market," it added.

The group's net profit dropped to RM21.77 million in its second quarter ended June 30, 2025 (2QFY2025) from RM24.23 million in 2QFY2024, though revenue remained largely flat at RM232.54 million versus RM232.94 million previously. The company attributed the lower bottom line to a higher base in 2QFY2024, which was boosted by savings from the finalisation of certain project costs.

The group declared an interim dividend of three sen per share, to be paid on Sept 18.

For the first six months of 2025 (6MFY2025), Paramount’s net profit came in at RM36.21 million, up 13.4% from RM31.94 million in 6MFY2024, as cumulative revenue rose 11.1% to RM450.38 million from RM405.55 million. As of end-June this year, its unbilled sales stood at RM1.5 billion.

Separately, Paramount announced that its deputy chief executive officer Benjamin Teo Jong Hian has been redesignated as its deputy chairman, effective immediately.

Jong Hian, son of the group’s late chairman, Datuk Teo Chiang Quan, is a major shareholder of the group, with a 1.46% direct stake and a 27.37% indirect stake through Paramount Equities Sdn Bhd.

Shares in Paramount closed three sen or 2.8% higher at RM1.10 on Wednesday, valuing the group at RM685.05 million.

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