KUALA LUMPUR: Paramount Corporation Bhd is poised to build on the momentum of record high property sales amounting to RM1.4 billion in 2024, a 24% increase compared to 2023, for the current financial year.
Group CEO and director Jeffrey Chew Sun Teong said the milestone of achieving the highest annual sales in its history underlines strong market demand and the company’s effective project pipeline.
In addition to the record-breaking achievement, Paramount’s unbilled sales rose by 12% to RM1.6 billion, providing healthy earnings visibility moving forward.
“While the overall take-up rate was not exceptionally high, the company views this as a natural result of its large number of project launches in 2024. The company remains unfazed, noting that developments with longer sales periods are expected to register lower take-up rates initially, especially when launched at scale,“ Chew told reporters after the Paramount’s annual general meeting today.
Moving forward, Paramount is expected to sustain its growth trajectory into 2025, supported by a robust pipeline of ongoing projects stemming from a record RM2.2 billion worth of property launches in 2024.
“This marked the highest launch value in the company’s history, with many of the developments continuing to drive sales into the current year. The launches were well diversified, with 72% comprising high-rise units, 27% landed properties and the remaining 1% commercial.
“Spread across multiple locations, the breadth of projects reflects Paramount’s strategic focus on maintaining a balanced portfolio, both in terms of product mix and geographical distribution, helping to ensure resilience amid varying market conditions,“ Chew said.
Paramount achieved revenue of RM1 billion in FY24, a 3% increase from FY23.
The group’s profit before tax (PBT) rose by 20% to RM156.9 million compared to RM130.2 million in FY23 on the back of sustained revenue from the property segment and dividend income from its investment in another property developer.
Profit attributable to ordinary equity holders grew 24% to RM102.4 million from RM82.8 million in FY23.
In FY24, the property segment achieved a record high PBT of RM145 million, contributing 92.4% of the group’s total PBT, supported by revenue of RM965.3 million.
The investment and other segments saw strong improvements, largely driven by the group’s stake in Eco World International Bhd (EWI).
The coworking segment reported an 80% jump in revenue to RM23.5 million (including RM5.2 million in intersegment revenue).
However, PBT declined to RM700,000 from RM2 million achieved in FY23, primarily due to the absence of a one-off impairment reversal that was recognised in FY23.
As of Dec 31, 2024, total assets stood at RM3.1 billion, up from RM3 billion a year earlier. Total liabilities rose to RM1.6 billion from RM1.3 billion.
Chew said, “Paramount’s gearing level rose slightly in 2024, mainly due to higher borrowings and financing related to its investment in EWI. The company also refinanced its perpetual debt during the year, contributing to the increase.
“Gearing level is currently higher due to the structure of its financial instruments and recent refinancing activities. Despite this, the company has maintained a consistent dividend payout track record, distributing at least 38% of its profits annually over the past decade.
“In total, shareholders have received approximately RM1.15 in dividends over 10 years, exceeding the company’s current share price of under RM1.10.”
With RM2.2 billion worth of launches in 2024, Paramount’s portfolio remains well diversified, comprising 72% high-rise developments, 27% landed properties and 1% commercial projects.
This broad spread across product types and locations provides resilience against unforeseen challenges.
The company believes this balanced approach will help sustain overall performance throughout the year, even if individual projects face temporary setbacks.
