Paramount's six-month net profit surges more than 150pct

KUALA LUMPUR: Paramount Corporation Bhd's net profit surged 153 per cent to RM35.7 million in the first six months ended June 30 2023 from RM14.1 million a year ago.

This was achieved on the back of higher revenue of RM436.1 million (1H2022: RM370.5 million).

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 Sept 21 to shareholders whose names appear on the Record of Depositors on Sept 11.

Group chief executive officer Jeffrey Chew said there were improvements both year-on-year and quarter-on-quarter.

Chew said the property division did commendably in 1H2023, achieving a 16 per cent rise in revenue at RM418.1 million (1H2022: RM361 million) and an 80 per cent improvement in pre-tax profit at RM70.3 million (1H2022: RM39.1 million).

"On the whole, we had more ongoing property projects in the first six months of 2023, compared to the same period last year when the economy was only starting to reopen fully," he said.

Chew said a larger base of work in progress and higher sales translated to higher revenue, and the company also finalised the costings of some projects, both of which contributed to better profits.

He said the momentum of property sales stayed strong in 1H2023, after achieving record sales of RM1.1 billion in 2022.

The property division sold RM617 million worth of properties in 1H2023, which is 45 per cent higher than that of the same period last year. 

Chew said the total value of properties launched was much higher Y-O-Y at RM820 million (1H2022: RM54 million), and there was spillover from the RM919 million of launches in the last quarter of 2022.

Paramount launched 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.

Chew said aside from the strength of its property brand as "The People's Developer", the company enjoyed higher sales because it had more products on the market compared to the previous year.

Chew said in the second half of the year, the company aims to launch RM714 million worth of properties, anchored by The Ashwood at the prestigious U-Thant enclave in Kuala Lumpur, next to its sold-out The Atrium.

Meanwhile, Chew said the company's 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.

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