KUALA LUMPUR: Paramount Corp Bhd
is eyeing a 10% pre-tax profit growth per year for the next five years, driven by key strategies including the expansion of its property division, monetisation of non-core assets and diversification of earnings base.
The property group said it is aiming to raise return on equity (ROE) from 8.3% in its financial year ended Dec 31, 2025 (FY25) to 10%.
“We are very confident of reaching 10% ROE, we are already doing what we need to do on the property side,” group chief executive officer Jeffrey Chew said at a media briefing yesterday.
The goal is expected to be achieved by improving launch efficiency and selective land banking in its property segment.
“We have been focusing on shortening our time-to-market, from the point of buying the land, to getting planning approval, to launching,” he said.
“We also want to buy in an area where we have been successful, and where we know the market, the agencies, the authorities, and the challenges of construction in that location.”
For FY25, Paramount had total dividends of 7.5 sen per share.
Chew said the group does not plan to distribute special dividends as assets are monetised.
“We want to put the funds back into reaching our target of 10% ROE. We see 7.5 sen as good enough for the shareholders and hopefully, there will be growth in terms of share price,” he said.
In FY25, Paramount recorded a net profit increase of 16% to RM119mil from RM102.4mil the year before.
Revenue for FY25 stood at RM947mil, representing a 9% decline from FY24.
Chew said this performance was largely affected by challenges in the property market in 2025 such as the minimum wage implementation, tariff hike, sale and service tax expansion, and EPF contributions to foreign workers.
Despite this, he expressed optimism about the property development industry’s long-term prospects for the next 10-20 years, due to the continued influx of residents into the Klang Valley.
