By Sharen Kaur
SHAH ALAM : Paramount Corporation Bhd has increased its target for selling real estate this year by 10 per cent to RM1.2 billion and is bullish on prospects given the scarcity of supply in urban areas.
Group chief executive officer and director Jeffrey Chew Sun Teong said that despite the fact that demand for homes has returned to pre-pandemic levels, there is a shortage of housing in urban areas.
“According to our market assessment, what has happened is that demand has returned to pre-Covid levels while the supply of property development has decreased by about 50 per cent to 60 per cent in some locations.
“There are many people following our projects, so we are able to generate sales. They are aware that prices increase when they sell. We construct what the market demands in the ideal place to draw in both current and new customers,” he said.
Chew said the company expects better performance this year compared to 2022, and its revenue will also grow accordingly with more launches, and a higher sales target.
“The first quarter performance is already hitting a historical high for our revenue, and also in terms of profit before tax, we did RM23.3 million, which is the highest since the COVID-19 pandemic. We should do better from the onset of the first quarter,” he said at a media briefing after its shareholders meeting yesterday.
Paramount delivered solid results, with a 60 per cent increase in pre-tax profit at RM23.3 million for the first quarter of 2023 (1Q2022: RM14.6 million) on the back of a 16 per cent percent increase in revenue at RM194.6 million (1Q2022: RM168.1 million).
Its profit attributable to ordinary equity holders of the company more than doubled to RM11.6 million from RM5.0 million recorded in 1Q2022.
The pre-tax profit for the property division was 41 per cent higher in 1Q2023 at RM29.3 million compared to the RM20.7 million recorded in 1Q2022, because of a larger base of on-going projects.
The property division’s revenue for 1Q2023 was RM185.8 million (1Q2022: RM163.9 million), with Utropolis Batu Kawan in Penang, Bukit Banyan in Kedah, and Berkeley Uptown in Selangor as the top three revenue contributors.
Paramount’s target for the fiscal year 2023 is to launch seven new projects involving commercial, industrial, and residential properties with a total gross development value of RM1.52 billion.
It also aims to expand its coworking segment by setting up three new locations this year, and improving its hotel and food businesses, Chew said.
“We have launched RM431 million worth of properties since March. Our biggest launch was the Savana high-rise residential project in Batu Kawan, Penang. As of May, we have a take-up rate of 26 per cent for the project, and inquiries are coming in,” he said.
He said the company is optimistic about launching properties worth RM1.1 billion for the remaining nine months of its fiscal year on the strength of the strong sales momentum realised in the first quarter of 2023 and pent-up demand for high-end and affordable products.
Notable launches are Paramount Palmera Industrial Park in Bukit Minyak, Penang, a new residential development at the prestigious U-Thant enclave in Kuala Lumpur, and Phase 2 of Sejati Lakeside 2 landed homes in Cyberjaya.
As published: New Straits Times
- Paramount ups its launches, sales target given the scarcity of supply in urban areas