KUALA LUMPUR (May 22): Paramount Corp Bhd’s (KL:PARAMON) first-quarter net profit came in flat as revenue fell to the lowest in nearly five years due to fewer ongoing projects and the absence of new launches.

Its weaker financial performance was also due to slower revenue recognition from early stage of construction and softer sales against a backdrop of geopolitical uncertainties, the property developer said in a bourse filing on Friday.

The group reported a net profit of RM14.40 million for the three months ended March 31, 2026 (1QFY2026) against RM14.43 million a year earlier.

Quarterly revenue fell 29.7% to RM152.2 million from RM216.46 million previously, representing the group’s lowest figures since 3QFY2021, when it reported RM84.61 million. 

No dividend was declared for the quarter under review.

Paramount said the property segment remained its main earnings contributor, despite a 32% year-on-year fall in revenue to RM140.1 million and a 27% decline in profit before tax to RM22.6 million.

With no new launches, sales fell 34% to RM152 million from RM230 million in 1QFY2025. Sales were mainly driven by The Atera transit-oriented development in Petaling Jaya, Bukit Banyan township project in Kedah, Sejati Residences in Cyberjaya, as well as completed commercial units at the Atwater development in Petaling Jaya.

Paramount said the coworking segment recorded revenue of RM4.7 million, a decline of 29% from RM6.6 million in 1QFY2025, mainly due to an absence of design and build contributions from Scalable Malaysia, partly cushioned by higher revenue from Co‑labs Coworking. The segment recorded a higher loss before tax of RM800,000 against RM500,000 a year earlier due to lower revenue and additional fixed costs associated with newly opened coworking spaces.

The investment & others segment recorded revenue of RM8.1 million, an 11% increase from RM7.3 million in 1QFY2025, driven by improved performance across all business units. Supported by the higher revenue as well as contribution from the newly acquired associate, Envictus International Holdings Ltd, the segment’s loss before tax narrowed by 59% to RM3.3 million from RM7.9 million a year ago.

Looking ahead, the group said the escalation in geopolitical conflicts resulting in heighted cost pressures on transportation, building materials and machinery have resulted in softer consumer and investor confidence, leading to more cautious home purchase decisions.

The group has unbilled sales of RM1.5 billion as at end-March.

Planned launches in the second half of this year include the first phase of a newly acquired land in Kulim, Kedah, new landed residential developments in Shah Alam, and two blocks of high-end serviced apartments in Kuala Lumpur’s U-Thant enclave.

As at March 31, 2026, Paramount’s undeveloped landbank stood at 617.2 acres, including the recently completed acquisition of 295.6 acres in Kulim, Kedah.

For the coworking segment, the group plans to grow its recurring income base through a premium, hospitality-driven coworking brand at select prime locations, with flagship space targeted to commence operations at Sunway Square, Subang Jaya in mid-2026.

Paramount’s share price closed down one sen or 0.96% to RM1.03 on Friday, giving the group a market capitalisation of RM641 million.