Paramount’s PBT up by 136% in 2Q2023, declares 3 sen interim dividend

Petaling Jaya, 25 August 2023: Paramount Corporation Berhad (Paramount) reported a Profit Before Tax (PBT) of RM36.8 million for 2Q2023, which was a 136% jump year-on-year (2Q2022: RM15.6 million), on the back of higher revenue of RM241.6 million (2Q2022: RM202.4 million).

Its six-month PBT nearly doubled to RM60.2 million (6M2022: RM30.2 million) on a higher revenue of RM436.1 million (6M2022: RM370.5 million). Profit attributable to shareholders at RM35.7 million (6M2022: RM14.1 million) was 153% higher year-on-year.

Paramount Group Chief Executive Officer Jeffrey Chew said, “We are naturally pleased with our last six months’ results, with improvements year-on-year as well as quarter-on-quarter.

Paramount declared a 3.0 sen interim dividend for FY2023. The single tier interim dividend of 3.0 sen per share will be paid on 21 September 2023 to shareholders whose names appear on the Record of Depositors on 11 September 2023.

“Our property division did commendably in the first half of FY2023, achieving a 16% rise in revenue at RM418.1 million (6M2022: RM361.0 million) and 80% improvement in PBT at RM70.3 million (6M2022: RM39.1 million).

“On the whole, we had more ongoing property projects in the first six months in 2023 compared to the same period last year when the economy was only starting to reopen fully. A larger base of work in progress and higher sales translated to higher revenue, and we also finalised the costings of some projects. Both contributed to better profits.”

Chew said the momentum of property sales stayed strong in the first half of 2023, after achieving record sales of RM1.1 billion in 2022.

He said the property division sold RM617 million worth of properties in 1H2023, which is 45% higher than that of the same period last year. The total value of properties launched was also much higher year-on-year at RM820 million (6M2022: RM54 million) and there was the spillover from the RM919 million of launches in the last quarter of 2022.

“Aside from the strength of Paramount Property’s brand as ‘The People’s Developer’, we enjoyed higher sales because we had more products in the market compared to the previous year, and I would like to add, not just any product, but the products that the market wants in terms of business and lifestyle needs, and they are priced attractively,” Chew said.

Paramount’s RM820 million launches in 1H2023 included Savana Utropolis Batu Kawan serviced apartments in Penang, Sejati Lakeside 2 semi-detached homes in Cyberjaya and Paramount Palmera Industrial Park in Bukit Minyak, Penang.

“In the second half of the year, we target to launch RM714 million worth of properties, anchored by The Ashwood at the prestigious U-Thant enclave in Kuala Lumpur, next to our sold-out The Atrium,” said Chew.

“Our coworking division, which became profitable in 1Q2023, recorded another profitable quarter in 2Q2023. We are confident that our strong Co-labs Coworking brand will continue to capture the growing market for coworking spaces in the Klang Valley, with the invigorated economy and the adoption of hybrid working,” Chew said.

Coworking revenue for 6M2023 was 44% higher at RM6.2 million (6M2022: RM4.3 million) with PBT improving to RM0.6 million (6M2022: Loss Before Tax (LBT) of RM0.3 million).