• Paramount’s 1HFY26 core net profit of RM42.9m (+16.4% YoY), which accounts for 43% of our FY26F forecast and 43% of consensus estimates. We deem the results to be in line as the Group’s earnings are weighted toward 2HFY26 due to concentrated launch activities.
• We expect the Group’s performance to remain resilient, supported by its robust unbilled sales of RM1.5bn, sizable undeveloped landbank of 548.6 acres and available for sales launched developments equivalent to c.RM1.3bn.
• Maintain BUY with a revised TP of RM1.51 (from RM1.46), based on a 55% discount to our revised RNAV of RM2.1bn following an update to our valuation assumptions.
Results Inline with 2H Earnings Weighting. Paramount reported a 2QFY26 core net profit of RM29.2m (+113.3% QoQ, +30.8% YoY), after adjusting for a bad debt written off (RM0.29m), net foreign exchange gain (RM0.16), a loss on derivatives (RM0.03m), and disposal of plant, property and equipment (RM0.01m). This brought 1HFY26 core net profit of RM42.9m (+16.4% YoY). While 1HFY26 earnings accounted for 43% of both our FY26F forecast and consensus estimates, we deem the results in line, as the Group’s earnings are typically weighted toward the second half of the financial year.
Interim Dividend. The Group declared a single-tier interim dividend of 3.0 sen per share, with an ex-date of 10 September 2026.
QoQ. Revenue jumped 82% QoQ to RM277.0m from RM152.2m (1QFY26), as Property segment billings accelerated, led by the Bandar Lunas industrial lot sale and stronger progress claims from ongoing high-rise projects. PBT rose 127.2% QoQ to RM42.2m and core net profit more than doubled (+113.3% QoQ) to RM29.2m, reflecting the seasonal pickup as more projects reached billable construction stages.
YoY. Group revenue rose 20.5% YoY to RM277.0m (2QFY25: RM229.9m), driven by the Property segment (+20.6% YoY) on the back of the Lunas land sale and continued Klang Valley contributions. PBT increased 40.4% YoY to RM42.2m and core net profit rose 30.8% YoY to RM29.2m. The Coworking segment remained loss-making on start-up costs at newly opened spaces, while Investment & Others narrowed its losses on stronger Hotel performance and the newly acquired Envictus associate stake.
YTD. 1HFY26 revenue fell 4.4% YoY to RM429.2m, reflecting a smaller active project base as the Group transitioned following 2025 completions, and a deliberately slower pace of new launches (c.RM0.1bn GDV launched in 1HFY26 vs a planned RM1.6bn in 2HFY26). Despite the revenue decline, PBT rose 15.5% YoY to RM60.8m and core net profit increased 16.4% YoY to RM42.9m after adjusting after excluding exceptional items amounting to RM0.558m, aided by a richer product mix with higher-margin products, and improved contributions from Investment & Others.
Outlook. We remain conservative on Paramount’s outlook, supported by its robust pipeline of upcoming launches, ongoing construction progress and healthy sales visibility. The Group’s unbilled sales remain healthy at RM1.5bn, equivalent to a 1.7x revenue cover, and are expected to be progressively recognised through FY28 as development projects progress. In addition, the Group maintains a sizeable undeveloped landbank of 548.6 acres, with 27% located in the Central region and the remaining 73% in the Northern region, providing a strong foundation for long-term development activities. Earnings visibility is further supported by an inventory of launched developments with an aggregate GDV of RM1.3bn currently available for sale. Looking ahead, management is targeting RM1.6bn in property launches for FY26, with the bulk of launches scheduled for 2HFY26. Key upcoming projects include the first phase of a newly acquired development land in Kulim, a landed residential project in Shah Alam and two blocks of high-end serviced apartments within the U-Thant enclave. Nevertheless, Paramount is taking a more cautious, demand-led approach to its launch pipeline as the property market shows signs of moderating amid geopolitical uncertainty and cost pressures, carefully assessing each project's timing and positioning while prioritising highermargin products. While it plans to launch an estimated RM1.6 billion in GDV in 2H2026 and remains committed to its previously communicated RM1.2 billion sales target, the Group now views that target as harder to hit than initially expected given softer demand and more cautious buyers. Co-labs Coworking continued its expansion, where a third new workspace opened in July 2026 at Sunway Square, and the Investment & Others segment should keep benefiting from improved Hotel performance and the Envictus associate stake, alongside newly renewed, higheryielding leases on its two tertiary education campuses.
Earnings Revision. We maintain our FY26F/FY27F core net profit forecasts of RM100.3m/RM149.4m, while introducing FY28F core net profit of RM183.1m. The step-up is driven by the Group’s 2H2026 launch pipeline of RM1.6bn reaches peak revenue recognition on the typical multi-year development cycle, supported by the Group's extensive landbank runway.
Valuation. We maintain our BUY recommendation with a revised TP of RM1.51 (from RM1.46), based on a 55% discount to our revised RNAV of RM2.1bn, following an update to our valuation assumptions under the new analyst coverage.
Risk. Failure to monetise non-core assets, exposure to the cyclicality of the property sector and rising construction costs.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.065852 | 4.097386 |
| EUR | 4.589381 | 4.597416 |
| CNY | 0.610175 | 0.610647 |
| HKD | 0.518032 | 0.522054 |
| SGD | 3.177971 | 3.202709 |