Paramount’s 3Q Profit Jumps on Perpetual Securities Redemption Despite Softer Revenue

Paramount Corp Bhd recorded a strong improvement in quarterly earnings for the third quarter ended Sept 30, 2025, largely supported by the redemption of its remaining perpetual securities. The group’s net profit surged 52.65% year-on-year to RM25.02 million, equivalent to 4.02 sen per share, compared with RM16.39 million or 2.63 sen a year earlier, according to its latest financial filing.

Despite the stronger bottom line, Paramount’s revenue slipped 11.26% to RM242.73 million from RM273.53 million previously. The group did not declare a dividend for the quarter.

Finance costs for private debt securities fell sharply to RM1.17 million, representing a 74.14% decline from RM4.53 million last year.

Property Segment Weighed by Lower Revenue

Revenue from the property division — Paramount’s core business — eased 11.64% to RM229.8 million. The key contributors during the quarter were the Atera development in Selangor, the Utropolis Batu Kawan township in Penang, and the Bukit Banyan development in Kedah.

In line with softer sales, the segment’s profit before tax (PBT) slipped 8% to RM36.5 million from RM39.8 million a year earlier.

For property investors and market watchers tracking developments in industrial land in Selangor, commercial property in KL, office space in Bukit Jalil, factory demand in Puchong, and industrial property in the Subang area, Paramount’s expansion and landbank strategy remain notable indicators of long-term confidence in high-growth locations.

Co-Working and Investment Segments Show Improvement

The group’s co-working business recorded a slight dip in revenue at RM5.2 million due to lower design-and-build contributions from Scalable Malaysia. However, segment PBT improved significantly to RM500,000 from RM200,000 a year earlier, driven by higher-margin projects.

Meanwhile, the investment and others segment delivered RM9 million in revenue, a 9% increase from RM8.3 million previously. All three units — Dewakan fine-dining restaurant, Mercure Kuala Lumpur Glenmarie, and the group’s education-related properties — contributed to the uplift. Loss before tax in this segment narrowed substantially to RM1.9 million compared with RM8 million in the same quarter last year, aided by stronger revenue and the absence of impairment losses recorded previously.

Nine-Month Performance Strengthened

For the first nine months of 2025, Paramount’s net profit climbed 26.68% to RM61.22 million, while revenue inched up 2.07% to RM693.11 million.

Group chief executive officer Jeffrey Chew said Paramount will maintain a cautious approach in rolling out new launches, favouring demand-driven strategies. He noted that the group continues to pursue strategic land acquisitions in growth corridors to support long-term expansion.

As of Sept 30, 2025, the group held 332.2 acres of undeveloped land, with another 314.52 acres pending completion of recent sale and purchase agreements. The company also reported RM1.7 billion worth of completed properties available for sale and RM1.6 billion in unbilled sales.

Co-Working Outlook Positive

Chew expects the co-working division to deliver stronger results in the final quarter of the year, supported by new contributions from Co-labs Coworking and Scalable Malaysia. The newly launched Co-labs facility in KL Sentral — one of Kuala Lumpur’s key transit hubs — has achieved solid take-up since opening. Paramount also plans to widen its presence beyond the Klang Valley with a new outlet in Mid Valley Southkey, Johor Bahru.

Additionally, Chew said the group is evaluating monetisation opportunities across its investment portfolio to improve capital efficiency and strengthen shareholder value.

At market close on Tuesday, Paramount’s share price remained unchanged at RM1.04, valuing the company at RM648 million.