KUALA LUMPUR (May 29): Paramount Corp Bhd’s (KL:PARAMON) net profit for the quarter ended March 31, 2024 (1QFY2024) fell 33.44% to RM7.71 million from RM11.58 million a year earlier, as its property segment was hit by lower work progress and sales.

Earnings per share for 1QFY2024 fell to 1.24 sen from 1.86 sen in 1QFY2023, according to the group's bourse filing on Wednesday.

The group’s latest net profit is its lowest since 1QFY2022, when it booked a net profit of RM5.02 million.

Quarterly revenue dropped 11.28% to RM172.61 million from RM194.56 million in 1QFY2023.

Paramount did not recommend any dividend for the quarter under review.

The group said revenue of its property segment declined 13% to RM161.8 million, from RM185.8 million in 1QFY2023, partly due to lesser properties being sold. This resulted in sales falling 65% to RM101 million from RM292 million previously.

“The group’s sizeable projects such as Sinaran and Sinaran Avenue that are both located at Utropolis Batu Kawan in Penang, and also Phase 1 of Uptown Residences at Berkeley Uptown in Selangor, were at the final stages of completion, resulting in comparatively lesser work completed this quarter,” it added.

Paramount plans to launch seven projects with a projected gross development value of RM2.4 billion.

The group said its unbilled sales of RM1.2 billion as at end-March 2024 will provide some visibility on its cashflow in the near term. 

“The predicted growth of the Malaysian economy and low unemployment rates will continue to fuel property demand in 2024 despite persisting challenges in a rising cost environment and a weakened currency that could constrain domestic discretionary spending,” the group said.

Meanwhile, Paramount said it has accelerated its overseas expansion plan with the acquisition of a 21.54% equity interest in Eco World International Bhd (KL:EWINT),  in line with its strategic plan. This acquisition, for a cash consideration of RM170.6 million, was completed on May 14.

“It will provide an additional layer of profits to complement the group's domestic property development business in the mid- to long-term horizon. Notwithstanding, its contribution to the group's operating results for the current financial year is not expected to be significant,” it added.

Shares of Paramount settled three sen or 2.4% lower at RM1.22, giving the group a market capitalisation of RM760 million. Year to date, the stock has rallied 31%.