PETALING JAYA: Paramount Corp Bhd
is expected to see stable earnings growth, underpinned by an expanding property presence and annual launches sustaining new sales prospects, says MBSB Research.
In a note, the research house projected 14% earnings growth for the company’s financial year ending Dec 31, 2026 (FY26), backed by stable progress billing of unbilled sales of RM1.5bil and new launches.
It said the group has a total remaining gross development value (GDV) of RM4.77bil as of December 2025, which should sustain project launches for the coming four to five years.
“Despite Paramount being a small cap developer, it has continued thriving with yearly launches of RM1bil to RM1.5bil and expanding its property presence through active land replenishment.”
The research house noted that up to March 2026, six sales and purchase agreements have been signed for 374 acres of land, with a projected GDV of RM4bil that are pending completion.
Most recently, the group announced its acquisition of a 3.7-acre freehold commercial land on Jalan Ampang for RM257.89mil from IOI Properties Group Bhd, to be developed into high-end serviced apartments with a projected GDV of RM1.1bil.
“The project is expected to launch in FY26 and should support new property sales for Paramount,” said MBSB Research.
“Meanwhile, Paramount aims to secure higher new sales in FY26 with a new sales target of RM1.2bil for FY26 after achieving new sales of RM1bil in FY25.”
The company distributed a dividend of 7.5 sen for FY25, and is targeting to maintain dividend yield in the range of 6% to 7%.
MBSB Research said it anticipates a similar quantum for FY26 to the year before, which translates to a “decent dividend yield of 7.5%”.
In FY25, the group recorded core net earnings of RM70.4mil, representing a 9.7% year-on-year rise.
Lower contribution from the company’s property and coworking divisions were mitigated by higher contribution from its other business and investments.
It added that management is looking to monetise its non-core assets to improve yield, and aims to raise its return on equity to 10% by 2030.
In addition to its co-working division, Paramount owns Dewakan restaurant and Mercure Kuala Lumpur Glenmarie hotel, as well as a 21.54% stake in Eco World International Bhd.
MBSB Research has placed a fair value of RM1.30 for Paramount based on a 68% discount to revalued net asset value, describing it as an undervalued small cap developer with stable business operations.
