Paramount to launch more projects in 4Q

PETALING JAYA: Property developer Paramount Corp Bhd plans to introduce RM300mil worth of new launches in the fourth quarter (4Q) of this year to boost sales.

These include townhouses in Salak Perdana, Sepang; landed residential units at the Bukit Banyan development in Sungai Petani; and the affordable component of The Atera serviced residence in Petaling Jaya, said TA Research.

New property sales declined 43% year-on-year (y-o-y) and 28% quarter-on-quarter to RM249mil in the third quarter, bringing sales for the first nine month of this year (9M25) to RM774mil, 22% lower y-o-y.

TA Research said the moderation in sales was mainly due to a 64% contraction in new launches, with total launches amounting to RM716mil in 9M25 versus RM2bil in 9M24.

However, unbilled sales stood at a robust RM1.6bil, equivalent to 1.6 times forecast property development revenue for this year, providing healthy earnings visibility moving forward.

TA Research made no changes to its earnings forecasts for Paramount for this year to 2027.

It retained its target price of RM1.46 a share, based on a price-to-book multiple of 0.6 times for next year. It also maintained its “buy” call on the stock.

The research house said the key contributors to 9M25 sales included The Atera, The Ashwood in Kuala Lumpur, and Embun Hills in Bukit Mertajam.

TA Research deemed the company’s sales performance, which reached 65% of its forecast and management’s RM1.2bil sales target, as broadly in line, with momentum that is expected to improve in 4Q25 supported by intensified marketing efforts.

The financial performance of the developer’s co-working segment is expected to strengthen in 4Q25, supported by higher occupancy at Co-labs Coworking and contributions from Scalable Malaysia’s design and build projects.

In addition, Co-labs will extend its footprint beyond the Klang Valley with the opening of a new space at Mid Valley Southkey, Johor Baru, in 4Q25.

Paramount reported 9M25 core net profit of RM61mil, which came in within expectations, accounting 74.9% of full-year forecasts.

Net profit attributable to ordinary equity holders increased 21% y-o-y to RM36mil in 9M25, primarily due to lower distributions to perpetual securities holders following the partial redemption of its perpetual securities in 3Q24.