KUALA LUMPUR: Paramount Corporation Bhd plans to launch RM1.4 billion worth of projects this year, focusing primarily on residential developments.
Group CEO Jeffrey Chew Sun Teong said the new launches will comprise a mix of landed and high-rise residential properties, with a focus on affordable and mid-range segments in key growth areas.
“These developments are expected to cater to strong housing demand while ensuring steady cash flow and sustainable revenue growth for the company,” he said when presenting Paramount’s financial year results yesterday.
Chew said the company’s priority still remains on completing previous projects to recognise revenue from unbilled sales totalling RM1.6 billion.
“While we have seen stable sales growth from last year’s launches, we are taking a cautious approach by reducing the rate of new project launches. At the same time, cash flow management remains our key focus, ensuring financial flexibility rather than aggressively paying off bank loans, while our dividend payment strategy is still under discussion.”
He added that in terms of land acquisition, the company purchased RM45 million worth of land last year and remains in negotiations for additional purchases.
“The stronger-than-expected sales performance in 2024 has prompted the company to focus on land replenishment, with a remaining gross development value (GDV) of RM5.5 billion. With a target revenue of RM1.2 billion this year, land replenishment is necessary to sustain project continuity over the next four years,” Chew said.
He disclosed that Paramount aims to secure RM2 billion in GDV land acquisitions this year, requiring about RM400 million in land purchases.
However, he emphasised that these acquisitions are part of a land replenishment strategy, not land banking.
“The land we acquire will be developed within five years, rather than being held for long-term value appreciation.
“We anticipate close to RM1 billion in cash inflows, and with bank financing of up to 80%, we will have the potential to acquire land worth up to RM5 billion. Our strategic decisions are still under discussion, including whether to prioritise dividend payments, land acquisitions, debt repayment, or other investments.”
Chew said Paramount is also evaluating potential investments in Eco World International Bhd (EWI) as part of its long-term growth strategy.
He acknowledged that shareholders have raised questions about the company’s willingness to invest further in EWI, and the management is actively discussing the potential benefits and risks of such a move.
“We understand the concerns, and this is something we will deliberate with the board. By mid-year, we hope to have a clearer direction on whether our strategy will lean towards higher dividend payouts, further land acquisitions, or reinvestment into new ventures such as EWI,” he said.
Chew said while EWI has ongoing developments in London and Australia, its financial performance and future market potential will be key factors in Paramount’s decision-making process.
“The first time you enter a new market, there is always a learning curve. Like our initial ventures into certain locations, understanding the market dynamics in London and other regions is crucial before making further commitments,” he added.
Chew stressed that Paramount remains committed to strengthening its portfolio, with a balanced approach to cash flow, asset expansion, and strategic investments in 2025 and beyond.
