KUALA LUMPUR (Aug 29): Paramount Corp Bhd's (KL:PARAMON) net profit for the second quarter ended June 30, 2024 (2QFY2024) stayed relatively flat at RM24.23 million, compared with RM24.11 million the previous year, despite recording slightly lower revenue.
Revenue was down 3.57% at RM232.94 million from RM241.55 million last year, primarily due to the lower work progress in its property segment, Paramount said in a filing with Bursa Malaysia on Wednesday.
The group declared an interim dividend of three sen per share for the quarter, similar to that of last year, payable on Sept 26.
Revenue for its property segment for 2QFY2024 was lower by 5% at RM220.7 million, with the Sejati Lakeside 2 development in Selangor, the Paramount Palmera development in Penang and the Berkeley Uptown development in Selangor its top three revenue contributors.
Meanwhile, the group's co-working segment recorded 65% higher revenue compared to last year at RM5.4 million, mainly attributable to higher revenue from the Tropicana Gardens space and contributions from the two new spaces at Ken TTDI and The Five.
For the first half of the year, Paramount posted a net profit of RM31.94 million, down 10.5% from RM35.70 million in the previous year's corresponding period, as revenue fell 7% to RM405.55 million from RM436.11 million.
The lower financial performance was mainly attributed to lower work progress coupled with lower property sales in 1QFY2024.
Nevertheless, Paramount group chief executive officer Jeffrey Chew pointed out that the value of the group’s property launches in the first half of 2024 1HFY2024 was more than double its full year 2023 (FY2023) launches of RM886 million.
"We are confident that our launches of RM1.7 billion, as at June 30, 2024, will yield strong sales and contribute positively to the group’s financial performance," he said in a separate statement.
Chew said sales for 1HFY2024 of RM638 million have also surpassed that of the same period of FY2023. "The Ashwood (residential development in Kuala Lumpur) that was launched in May 2024 has contributed to more than 60% of the sales. We are confident that the sales momentum will continue for The Ashwood and other projects."
Looking ahead, Chew said Paramount is targeting to launch four more projects — including new phases of existing projects — in the second half of the year, with a projected gross development value of RM700 million.
"Expected launches in the third quarter of 2024 include Greenwoods Salak Perdana Senna in Sepang, comprising semi-detached cluster townhouses,” he said.
As at June 30, 2024, the group's unbilled sales stood at RM1.4 billion while its undeveloped land stood at 416.9 acres.
Paramount shares closed unchanged at RM1.06 on Wednesday, valuing the group at RM660.14 million.