Paramount raises sales target on brighter outlook

PETALING JAYA: Paramount Corp Bhd is optimistic on the property market’s outlook and has set a higher sales target of RM1.2bil for financial year 2023 (FY23), says TA Research.

Paramount’s goal will be supported by seven new launches, including new phases of existing projects, which have an estimated gross development value (GDV) of RM1.5bil.

“Based on the positive response to recent launches, Paramount is confident the sales target will be achieved,” the research firm stated in a report.

Paramount is also expecting to grow its business in the industrial property segment, as well as residential products in the northern area.

Among the products planned is Paramount Palmera, a freehold light industrial development in central Seberang Perai, which is expected to be launched in the first half of financial year 2023 (1H23) due to demand.

With a potential GDV of RM157mil over a three-year development span, Paramount Palmera will account for 11% of the RM1.5bil target set by the group.

“The strategic location of Paramount Palmera near Jalan Permatang Tinggi, in the vicinity of the established industrial address of Bukit Minyak, enhances its appeal,” added TA Research.

In terms of land banking strategy, Paramount chose to concentrate on replenishing its landbank near its existing township, capitalising on the township’s success and popularity, rather than exploring new locations.

Paramount expects its co-working business to be profitable this year, in light of the ongoing recovery of the Malaysian economy.

A substantial improvement can be seen in Paramount’s co-working business, which only lost RM600,000 in FY22 compared to RM4.1mil in FY21, giving the property developer confidence that a turnaround is possible.

Paramount is currently running five outlets in Klang Valley with an average occupancy rate of 70%.

TA Research has maintained a “buy” call on Paramount but has raised its target price to 95 sen per share.

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