PETALING JAYA: TA Research is maintaining its “positive” outlook for Paramount Corp Bhd
, premised on the group’s strong financial year 2024 (FY24) results as well as the scope of its projects.
In a note, the research house said Paramount Corp had set an FY25 sales target of RM1.5bil, supported by several projects, including new phases of existing developments, with a total gross development value of RM1.4bil, along with RM1.8bil worth of launched or completed properties.
In addition, the research house said Paramount Corp’s coworking segment Co-labs Coworking – which operates under Paramount Coworking Sdn Bhd – planned to expand its footprint with two new locations while enhancing occupancy across all spaces.
Compared with 2023, TA Research said Paramount Corp’s core net profit attributable to ordinary equity holders rose 16% year-on-year (y-o-y) to RM86.1mil in FY24, driven primarily by stronger performance in the group’s investment and other segments, largely due to dividend income from Eco World International Bhd (EWI).
Paramount Corp acquired a 21.54% stake of EWI in May 2024, initially classifying it as an associate company.
At the same time, the group’s property segment recorded revenue of RM981.3mil and pre-tax profit of RM145mil in FY24, up 1% and 4% y-o-y respectively, primarily driven by a shift in product mix toward more commercial and industrial products as well as cost savings.
According to TA Research, revenue for the group’s coworking segment surged 80% y-o-y to RM23.5mil in FY24, driven by Scalable Malaysia’s 252% growth in design and build revenue.
Scalable Malaysia is a one-stop workspace solution provider that manages office workspaces.
In the fourth quarter, Co-labs Coworking expanded its space at IOI Mall Damansara and new locations at Ken TTDI and The Five in Kuala Lumpur.
However, pre-tax profit for the coworking division in 4Q24 declined to RM600,000 compared with RM900,000 in 4Q23, due to startup losses from the new spaces and higher depreciation and amortisation expenses for Naza Tower, according to the research house.
TA Research said in 4Q24, Paramount Corp’s core net profit to ordinary shareholders surged 88% quarter-on-quarter (q-o-q) to RM35.3mil, driven mainly by dividend income from EWI recognised in 4Q24 and a 64% q-o-q reduction in lower distributions to private debt securities holders.
“Paramount Corp’s 4Q24 new property sales grew 88% y-o-y and 12% q-o-q to RM396mil, bringing FY24 sales to RM1.39bil, meeting management sales target of RM1.4bil and our sales assumptions of RM1.35bil,” the research house said.
The top contributors to FY24 sales were The Ashwood at UThant in Kuala Lumpur, The Atera in Selangor, and Bukit Banyan in Kedah.
Unbilled sales increased to RM1.6bil, up from RM1.5bil in the previous quarter, according to the research house.
It further observed that Paramount Corp’s 2025 outlook included Co-labs Coworking targeting to expand its footprint with new ocations.
The research house is maintaining its “buy” call on Paramount Corp, with a target price of RM1.68 per share.
