By Hayatun Razak
KUALA LUMPUR: Property developer Paramount Corp Bhd has set its sights on project launches totalling between RM1 billion and RM1.5 billion in financial year 2024 (FY24)
Group CEO & executive director Jeffrey Chew Sun Teong (pix) stated that it is important to launch projects worth at least RM1 billion annually for the group to achieve its target of reaching an annual revenue of at least RM1 billion.
“We need a turnover of at least RM1 billion (annually) … We took about six or seven years to achieve that. So now, we are at the RM1 billion level, and for us, we need a growth of about RM1 billion to RM2 billion (per year). Definitely, we will grow … for us to reach RM1.4 billion (our 2023 target launch), we need revenue of RM1 billion plus (moving forward). This means our sales launches have to exceed a billion (annually),” he said during Paramount H1 ‘23 financial results presentation.
For the first half of 2023 ended June 30, 2023, the group reported a higher net profit of RM35.7 million, compared to RM14.13 million in the same period last year. Additionally, the company’s revenue increased to RM436.11 million from RM370.48 million in the corresponding period. The better performance was underpinned by improvements recorded by the property division.
Looking ahead in its property division, riding on the strong sales momentum achieved, the group targets to launch RM700 million worth of properties in the second half of the year, anchored by The Ashwood at the prestigious U-Thant enclave, Kuala Lumpur (high-end serviced apartments located next to The Atrium, also by Paramount).
“Apart from new launches, the demand of the group’s existing products is expected to be resilient for the rest of the year given the good response received. The group’s new record of unbilled sales of RM1.5 billion as at June 30, 2023 will provide some visibility on the group’s cashflow in the near term. However, the pace at which this can be converted into billings would depend largely on the construction progress of projects. As at June 30, 2023, the group’s undeveloped land stood at 486.6 acres,” the group said in a Bursa filing.
In its coworking division, leveraging the growing demand for coworking and flexible office solutions, Co-labs Coworking will scale up its operations in the second half of 2023.
“This includes the expansion of its existing Tropicana Gardens outlet and the opening of two new spaces in the Klang Valley. Scalable Malaysia will continue to leverage Paramount property’s expertise to design and build more workspaces for its growing customer base,” it added.
As published: The Sun Daily
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