Paramount 2Q profit rises 33% on stronger property segment

PETALING JAYA (Aug 26): Paramount Corp Bhd’s profit attributable to ordinary equity holders rose 33% year-on-year to RM29.02 million for the second quarter ended June 30, 2026 (2QFY2026), from RM21.77 million a year earlier, supported by stronger performance from its property segment.

Revenue increased 20% to RM276.97 million from RM229.93 million, while profit before tax rose 40% to RM42.21 million from RM30.06 million, according to the property developer’s unaudited quarterly results filed with Bursa Malaysia on Wednesday (Aug 26). Basic earnings per share increased to 4.66 sen from 3.50 sen.

The board declared a single-tier interim dividend of three sen per share, unchanged from a year earlier, payable on Sept 24 to shareholders whose names appear in the record of depositors on Sept 11.

Paramount said property-segment revenue rose 21% to RM263.1 million in 2QFY2026 from RM218.2 million a year earlier. The group attributed the increase mainly to the sale of an industrial lot at its Bandar Lunas development in Kedah, together with contributions from The Atera and The Ashwood residential developments in the Klang Valley.

Property-segment profit before tax increased 33% to RM47.1 million from RM35.4 million, mainly due to the higher revenue, Paramount said.

The coworking segment recorded revenue of RM6.3 million, compared with RM7.4 million a year earlier. It posted a loss before tax of RM600,000, against a pre-tax profit of RM100,000 in 2QFY2025.

Paramount attributed the reversal to pre-commencement expenses, mainly rentals, and initial operating costs incurred at two new spaces.

Meanwhile, the Investment & Others segment’s revenue grew 12% to RM9 million from RM8 million, while its loss before tax narrowed to RM4.3 million from RM5.4 million.

Paramount attributed the improvement to a higher contribution from the Mercure Kuala Lumpur Glenmarie hotel and contributions from Envictus International Holdings Ltd, an associate in which it acquired a 28% strategic stake in August 2025.

First-half profit rises despite lower revenue

For the six months ended June 30, profit attributable to ordinary equity holders increased 20% to RM43.42 million from RM36.21 million, despite revenue declining 4% to RM429.17 million from RM446.39 million. Profit before tax increased 16% to RM60.78 million from RM52.63 million.

Paramount said the lower first-half revenue reflected a transition in its project portfolio following the completion of several projects that contributed to earnings in 2025. Its ongoing projects are predominantly at earlier construction stages, resulting in more gradual revenue and earnings recognition during the period.

Property-segment revenue for the first half declined to RM403.2 million from RM424.1 million, while profit before tax rose to RM69.8 million from RM66.3 million. Paramount attributed the improved profitability despite lower revenue to a more favourable product mix, with greater contributions from higher-margin products.

First-half property sales fell 21% to RM413 million in gross development value (GDV) from RM525 million a year earlier, which Paramount said was in line with the lower launch value recorded over the past 12 months. The key contributors were its Bandar Lunas development in Kedah, The Atera and Sejati Residences in Selangor.

Unbilled sales stood at RM1.46 billion as at June 30. Paramount said the unbilled sales were expected to provide near-term cash-flow visibility as construction progresses.

RM1.6b launches planned for second half

Paramount had approximately RM1.3 billion of completed and ongoing properties available for sale as at June 30. It plans to launch projects with an estimated GDV of RM1.6 billion in the second half of 2026.

The planned launches include a landed residential development in Section U9, Shah Alam, and a premium high-rise residential development in Kuala Lumpur’s U-Thant enclave. Both are targeted for launch in the fourth quarter.

Its undeveloped land bank stood at about 548.6 acres as at June 30. The group has also signed four land purchase agreements that are pending completion.

Upon completion, the acquisitions are expected to add about 74.6 acres to its undeveloped landbank, with an estimated combined GDV of RM1.9 billion.

The board said it remained cautiously optimistic about Paramount’s prospects for FY2026. The group said it would continue to focus on timely project execution, sales conversion and operational efficiency to support earnings and cash-flow generation amid a challenging operating environment.

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