PETALING JAYA: TA Research has cut its earnings assumptions for property company Paramount Corp Bhd
, following the management’s decision to adopt a more cautious stance.
TA Research has cut its financial year ending Dec 31, 2025 (FY25)/FY26/FY27 sales assumptions by 18%/10%/5% to reflect management’s latest guidance.
Accordingly, its FY25/26/27 earnings forecasts are lowered by 7%/12%/11%, TA Research told clients in a note.
“Management has decided to adopt a more cautious stance due to persistent economic and property market headwinds. As a result, the FY25 sales target has been lowered by 20% to RM1.2bil from RM1.5bil, with the launch pipeline scaled back to RM1bil from RM1.4bil.”
TA Research noted that Paramount posted a core net profit of RM36.2mil in the first half of 2025 (1H25), accounting for 41% of its full-year forecast. The results fell short of expectations, mainly due to weaker-than-anticipated property sales and revenue recognition.
A first interim dividend of three sen per share was announced, matching the amount declared in the corresponding period last year, it noted.
It said the property segment posted an 11% revenue increase to RM424.1mil in 1H25, driven by higher progress billings from The Atera (Selangor), Utropolis Batu Kawan (Penang) and Bukit Banyan (Kedah).
However, profit before tax grew a modest 3% to RM66.1mil, given the high base in 1H24 which had included project cost finalisation savings. It noted the company’s coworking segment’s revenue climbed 52% on a year-on-year basis to RM14mil in 1H25. Its target price for the stock is RM1.46. At last look, it was RM1.09 apiece, valuing the whole group at RM679mil.
