Petaling Jaya, 27 February 2023: Paramount Corporation Berhad (Paramount) is proposing a final dividend of 3.5 sen for FY2022, on top of the 12 sen special dividend to be paid on 29 March 2023, as reward to shareholders.
Paramount’s total dividends for FY2022 would be 18 sen if the proposed final dividend is approved by shareholders at its forthcoming Annual General Meeting. Paramount had already paid an interim dividend of 2.5 sen for FY2022 in September. The 12 sen special dividend will be paid from the proceeds of the divestment of Paramount’s remaining equity in its pre-tertiary education business in 2022.
Paramount recorded a revenue of RM847.5 million and a profit before tax (PBT) of RM105.1 million for FY2022, which were 24% and 50% respectively higher than in the previous year. The FY2022 PBT included a RM15 million net gain from two asset monetisation exercises in FY2022. Profit attributable to shareholders was RM60.2 million for FY2022, a 111% jump from RM28.5 million in FY2021.
Paramount Group CEO Jeffrey Chew said the property division’s strong performance in 2022 coupled with the improvement in the financial performance of its other businesses showed the ability of the Group’s businesses to thrive in the year of recovery.
“The full reopening of the economy in the second quarter of 2022 had led to a surge in sales and we are happy to say that the momentum has been sustained. By the first nine months, we had already exceeded the financial results of the full year 2021,” he said.
“The property division achieved 23% improvement in revenue at RM823.4 million for FY2022 (FY2021: RM672.1 million – including RM90 million in land sale) and a 33% growth in PBT at RM104.7 million (FY2021: RM78.6 million),” he said.
The top three revenue contributors in FY2022 were Sejati Lakeside development in Selangor, Utropolis Batu Kawan development in Penang and Bukit Banyan development in Kedah.
Chew said, “The Group achieved two new milestones in FY2022. Firstly, it achieved its highest ever sales of RM1.1 billion, surpassing its record in 2018.”
“Secondly, it launched RM1.2 billion properties, of which RM0.9 billion was launched in the final quarter of 2022, including Phase 1 of Sejati Lakeside 2 in Cyberjaya (non-strata double storey semi-detached homes), The Atera in Petaling Jaya (a transit-oriented development) and Greenwoods Seraya in Sepang (townhouses).”
He also said these three projects were expected to contribute positively to the Group’s sales performance in 2023, given the good response they had received.
“Riding on this momentum, Paramount would be launching seven projects (including new phases of existing projects) in 2023 with an estimated gross development value of RM1.5 billion. We believe Paramount Property as The People’s Developer will continue to enjoy the trust and confidence of buyers.
“These include Savana, Utropolis Batu Kawan in Penang (freehold serviced apartments), Phase 2 of Sejati Lakeside 2 in Cyberjaya (non-strata double storey semi-detached homes) and Paramount Palmera in Bukit Minyak, Penang (strategically located light industrial properties),” he said.
Chew said he was confident with its property division’s ability to achieve a sales target of RM1.2 billion given that demand for residential properties has always been resilient on the growth of the Malaysian economy. The Malaysian GDP is expected to grow by 4%-5% in 2023.
Unbilled sales stood at RM1.4 billion as at 31 December 2022, which would provide some visibility of cashflow in the near term, contingent on construction progress. The Group’s land bank stood at 565.5 acres, including the land that it has development rights where The Atera is being built, and the 64.3 acres in Sepang added at the end of the year.