Paramount's 4Q net profit surges 92%, boosted by investment in Eco World International

• The group declared a third interim dividend of 1.5 sen per share, payable on March 21, bringing its total dividend for FY2024 to 7.5 sen per share, higher than the seven sen paid in FY2023.

KUALA LUMPUR (Feb 21): Paramount Corp Bhd (KL:PARAMON), which has set a property sales target of RM1.5 billion for 2025, on Friday posted a 91.9% jump in net profit for the fourth quarter ended Dec 31, 2024 (4QFY2024).

The RM54.12 million quarterly net profit compares with RM28.2 million for 4QFY2023, and is the highest since 1QFY2020.

The surge in earnings was primarily driven by a net contribution of RM58.6 million from Paramount's investment in Eco World International Bhd (KL:EWINT), or EWI, the group said in a bourse filing. Paramount, through its wholly owned subsidiary Flexis Sdn Bhd, holds a 21.54% stake in EWI.

Paramount’s revenue for the quarter grew 16.72% to RM361.09 million from RM309.36 million in 4QFY2023, with contributions from all business segments, including property, co-working, and investment.

The group declared a third interim dividend of 1.5 sen per share, payable on March 21, bringing its total dividend for FY2024 to 7.5 sen per share, higher than the seven sen paid in FY2023.

Paramount’s net profit for the full year increased 23.67% to RM102.45 million from RM82.84 million in FY2023, while revenue rose 2.76% to RM1.04 billion.

The group recorded property sales with a gross development value (GDV) of RM1.4 billion in FY2024, a 24% jump from RM1.12 billion in FY2023. This was led by strong sales from The Ashwood at U-Thant in Kuala Lumpur, followed by The Atera in Selangor and Bukit Banyan in Kedah.

Looking ahead, Paramount has set its FY2025 sales target at RM1.5 billion, supported by pipeline launches with a total GDV of RM1.4 billion across eight projects (including new phases of existing developments) and RM1.8 billion worth of launched or completed properties.

Additionally, the group expects ongoing construction progress on its unbilled property sales — standing at RM1.6 billion as of Dec 31, 2024 — to positively contribute to its financial performance. However, the timing of revenue recognition will depend on the work progress of these projects, it said. 

In the co-working segment, Co-labs Coworking plans to open two new spaces in 2025 while focusing on boosting occupancy across all locations. Meanwhile, Scalable Malaysia is expected to continue expanding its design-and-build business, contributing positively to the segment's financial performance.

For its investment and other segments, Paramount said its financial performance will benefit if EWI declares dividends. “Additionally, Dewakan restaurant (together with the opening of Bidou, a spin-off from Dewakan) and the Mercure Kuala Lumpur Glenmarie hotel are expected to benefit from the continuous growth of the Malaysian economy and the anticipated growth in tourism activities ahead of Visit Malaysia 2026,” it said.

Paramount’s share price closed unchanged at RM1.08 on Friday, giving the group a market capitalisation of RM672.6 million.

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