PETALING JAYA: Paramount Corp Bhd
’s core net profit (CNP) for its financial year 2025 (FY25) has fallen short of analysts’ expectations.
TA Research said the group’s CNP declined by 14.5% year-on-year, coming in at RM73.6mil in FY25.
The research house noted that the underperformance was due to weaker property development earnings, as newly launched projects have yet to reach more meaningful billing stages.
It also noted that the group’s higher earnings base in FY24, which included a large dividend income from its investment in Eco World International Bhd, did not recur in FY25.
Meanwhile, Kenanga Research observed that Paramount’s FY25 launch pipeline missed its targeted annual range of RM1bil to RM1.5bil, coming in at only RM808mil.
The company declared a second interim dividend of 4.5 sen per share, bringing the FY25 total dividends to 7.5 sen per share, unchanged from FY24.
Based on the latest closing price, TA Research highlighted that the result translates into an attractive dividend yield of 7.1%.
Kenanga Research explained that the dividend yield is backed by ongoing asset monetisation and improving associate contributions in the near term.
Despite challenges, analysts maintained an upbeat outlook for Paramount’s FY26, underpinned by ongoing optimisations, an expanded launch pipeline, and rising associate contributions.
Apex Securities Research highlighted increasing earnings contributions from its newly acquired associate, Envictus International Holdings Ltd (EIHL), in which Paramount holds a 28% stake.
EIHL’s fourth-quarter FY25 associate contribution of RM4.1mil marked an optimistic start to earnings accretion, according to Kenanga Research.
Paramount also plans to expand its profitable Texas Chicken network to 118 outlets by the end of its FY26, up from 104 outlets as of December 2025.
The research house retained its “outperform” rating on Paramount, with a slightly lower target price (TP) of RM1.47 a share, down from the previous TP of RM1.49.
The rating reflects updated project gross development values with an unchanged 50% discount to revalued net asset value, in line with sector averages.
In a statement last week following its latest financial results, Paramount’s chief executive officer Jeffrey Chew said the group’s performance reflected its ability to navigate a softer market environment while continuing to deliver value to shareholders, with a solid earnings per share of 19 sen.
“FY25 was a year of disciplined execution including value-enhancing asset disposals, with a tertiary campus disposal being the major contributor, as well as contributions from our 2025 strategic investment.
“The RM75mil proceeds from the campus disposal were earmarked mainly to repay borrowings,” he said.
Looking ahead to FY26, Chew said: “We anticipate a satisfactory financial outlook this year, supported by a solid property sales pipeline with unbilled sales of RM1.5bil (as at Dec 31, 2025), and the implementation of cost-optimisation initiatives to enhance operational efficiency and margins.”
