Petaling Jaya, 28 May 2024: Paramount Corporation Berhad (Paramount or the Group) reported a profit before tax (PBT) of RM17.0 million (1Q2023: RM23.3 million) on the back of RM172.6 million in revenue (1Q2023: RM194.6 million) for the first quarter of 2024. Its profit attributable to shareholders was RM7.7 million (1Q2023: RM11.6 million).
The lower financial performance recorded in the first quarter of the year as compared to the same period last year was mainly due to lower work progress and sales achieved by the property division.
The lower progress was aggravated by the festive holidays that were followed closely by the start of the fasting month in the first quarter while the lower sales was in line with fewer properties available for sale partly due to the deferment in launches and delays in obtaining approvals from the authorities.
Paramount targets to launch seven projects (including new phases of existing projects) in 2024 with a projected gross development value (GDV) of RM2.4 billion, of which RM81 million was launched in 1Q2024.
“Response is encouraging from the recently launched The Ashwood in May 2024, a luxury high rise residential development at the prestigious U-Thant enclave in Kuala Lumpur. With an expected GDV of RM781 million and our largest launch of the year, The Ashwood offers 354 units of condominiums, duplexes, and low-rise villas on 3.59 acres of freehold land,” said Chew.
Together with The Ashwood launch, Paramount expects to launch a total GDV of RM1.6 billion by the first half of 2024.
“We are optimistic that the good sales traction will continue as these new launches are within our existing project locations, all of which have recorded commendable take-up rate,” added Chew.
The Group’s unbilled sales as at 31 March 2024 stood at RM1.2 billion, and would provide some visibility on the Group’s cashflow in the near term.
Property division
In 1Q2024, the property division posted a PBT of RM23.0 million (1Q2023: RM29.3 million) on the back of RM161.8 million in revenue (1Q2023: RM185.8 million). The top three revenue contributors were Utropolis Batu Kawan development in Penang, Sejati Lakeside 2 development in Selangor, and Bukit Banyan development in Kedah.
The property division sold properties with a gross development value (GDV) of RM101 million (1Q2023: RM292 million) in the first quarter of 2024.
Coworking Division
The Co-labs Coworking division recorded a revenue of RM3.8 million for 1Q2024, 31% higher than the corresponding period last year of RM2.9 million. This was mainly attributable to higher revenue from the two existing spaces, Naza Tower and Tropicana Gardens, as well as the Ken TTDI space, which opened in November 2023.
Despite the higher revenue, the coworking division recorded loss before tax (LBT) of RM0.5 million in 1Q2024 compared to PBT of RM0.1 million recorded in 1Q2023. This was primarily due to the losses recorded by the two new spaces, The Five, which was opened in January 2024 and Ken TTDI.
