PETALING JAYA: Paramount Corp Bhd
is relying on a RM1.6bil second-half launch push to salvage its full-year property sales target, following a quiet first half of financial year 2026 (1H26) focused on profit margins over volume.
According to TA Securities Research, Paramount’s 1H26 net profit jumped 20% year-on-year (y-o-y) to RM43.4mil, despite a 4% decline in revenue to RM429.2mil driven by improved product mix margins of 17.3% and industrial lot sales at Bandar Lunas, Kulim in Kedah.
However, the research house highlighted that property sales reached just RM413mil in 1H26, fulfilling only 34% of management’s RM1.2bil target after launches were deliberately scaled back by 56% y-o-y to RM152mil amid global economic uncertainty.
“The demand is not broadly weak but increasingly selective.
“High-end products remain supported by foreign interest, particularly from Chinese buyers, while bumiputra buyers, government/government-linked company employees and selected commercial/industrial products continue to hold up.
“In contrast, upgrader and investment demand have softened, as buyers turn more cautious on affordability and job prospects.”
Conversely, TA Research added that upgrader and investment demand have softened due to affordability concerns.
To close the sales gap, Paramount is unleashing a massive RM1.6bil gross development value launch pipeline in 2H26.
Key projects include The Ashbourne, a RM1.1bil luxury residential project in the U-Thant enclave, and Sejati By The Lake in Shah Alam.
TA Research maintains a conservative financial year of 2026 sales estimate of RM1.06bil, noting that full-year performance hinges on swift execution and strong take-up for these releases.
“Furthermore, the 2H launch pipeline gives Paramount room to catch up, but execution needs to improve after the softer 1H.”
