Paramount Corp. Bhd. · MYX:PARAMON
Paramount Corp. Bhd — H1 2023 Earnings Presentation
29 slides from Paramount Corp. Bhd's earnings presentation, Sep 6, 2023
Slide 1: Investor Relations & Media Presentation 1H2023 Results
Investor Relations & Media Presentation 1H2023 Results 6 September 2023 1
Slide 2: Overview 1H2023
PARAMOUNT Overview 1H2023
Slide 3: 1H2023 Highlights
1H2023 Highlights Revenue PBT Profit attributable to shareholders RM436.1m RM60.2m RM35.7m YOY 18% YOY 99% YOY 153% Property Sales Properties Launched Average Take-Up Rate RM617m RM820m 73% ^ YOY 45% YOY 1419% 30 Jun 2022: 85% Unbilled Sales Debt to Total Interim Dividend Equity Ratio RM1.5bn Gross
Slide 4: Gross Div Per Share & Payout Ratio
Gross Div Per Share & Payout Ratio Net assets per share sen Dividend Special Dividend Payout Ratio Payout ratio @ 30 June 2023 35.0 200% ** 186% 180% RM2.26 30.0 160% 25.0 140% Market price per share 120% @ 4 September 2023 20.0 29 # 100% 65% RM0.965 15.0 # 80% 40% 12.0 10.0 38% 60% Price to book ra
Slide 5: Awards and Industry Recognition 2023
Awards and Industry Recognition 2023 Market Cap below RM1 bn ➢ Top-of-the-Chart Awards: No. 2 ➢ Best in Qualitative Top 10 developers (Malaysia) ➢ All-Stars Award (Top 10 Listed) : No. 7 ➢ Family-Friendly Award (High-rise) -Beyond Greater KL - Honours ➢ Family-Friendly Award (Landed) Within Greater
Slide 6: Operational Review
PARAMOUNT ~ Operational Review
Slide 7: Property Sales & Unbilled Sales
Property Sales & Unbilled Sales 45% y-o-y growth in 1H2023 sales; Unbilled sales at record high of RM1.5 bn Sales and unbilled sales 1H2023 Sales RM’ mil 1,482 Arinna Kemuning 1,600 Utama, Selangor 7% Bukit Banyan, 1,248 Kedah 1,400 Greenwoods Salak 11% Perdana, Selangor 14% 1,200 Utropolis Batu Kaw
Slide 8: On-going products – take up rate & launches
On-going products – take up rate & launches Y-o-y 31% increase in GDV of on-going projects to RM3.8 bn# on the back of 11 projects 2 On-going L Existing GDV as at GDV launched in 1H2023 Take up rates a Type of projects by 30 June as at 30 June Locations development subsidiaries 2023 GDV 2023^ RM’m Q
Slide 9: Co-labs Coworking & Scalable Malaysia
Co-labs Coworking & Scalable Malaysia Y-o-y improvement in occupancy rate for all coworking spaces Co-labs Coworking 81% Starling Plus 14% Shah Alam 30% Average occupancy rate @ 30/6/2023 Tropicana Gardens 15% 114,945 sq ft 5 spaces In Klang Valley The Starling 17% Naza Tower 24% Scalable Malaysia O
Slide 10: Financial Review
PARAMOUNT ~ Financial Review
Slide 11: Financial Overview
Financial Overview First two quarters in 2023 recorded y-o-y improvements 1H2023 1H2022 Variance Revenue (RM’m) RM’000 RM’000 % 300 241 Revenue 436,106 370,481 +18 250 195 202 200 168 Operating profit before 150 85,657 51,359 +67 depreciation 100 Depreciation (10,979) (10,601) +4 50 0 Net interest e
Slide 12: Property Division
Property Division Improvements due to more on-going projects, higher sales & project costings savings The Atrium, Yr on Yr Arinna Kemuning Kuala Lumpur Paramount Palmera, Utama, Selangor Penang 5% • Revenue RM418.1m 16% 4% 0% Bukit Banyan, Kedah • PBT RM70.3m 80% 20% Berkeley Uptown, • PBT margin 17
Slide 13: Coworking Division
Coworking Division Revenue improved 44% with second consecutive quarter of profit Yr on Yr Revenue 1H2023 • Revenue RM6.2m* 44% • PBT RM0.6m 300% Scalable Malaysia ➢ All 5 spaces recorded y-o-y improvement 21% in occupancy on the back of continuous Co-labs Coworking growth of the economy 79% ➢ Top 3
Slide 14: Investment & Others Division
Investment & Others Division Revenue improved 108% ; Losses widen on lower contribution from associates Yr on Yr Revenue 1H2023 • Revenue RM12.7m 108% Mercure Kuala Lumpur • LBT RM10.7m 24% Dewakan Glenmarie 24% 43% ➢ The improvement in revenue had help to cushion the negative impact from the lower
Slide 15: Financial Position (30 June 2023)
Financial Position (30 June 2023) Strong balance sheet and liquidity position Shareholders’ Net current Debt to Total funds assets YOY Equity 98% ratio* RM1.4bn RM801m Gross 0.60x Net 0.42x Cash & bank Unbilled sales Net cash from balances operating activities RM296m RM1.5bn RM103m * Included Privat
Slide 16: Industry Overview
PARAMOUNT Industry Overview
Slide 17: Malaysia Property Sales Volume 1Q2023
Malaysia Property Sales Volume 1Q2023 Decline in property sales volume; residential property transaction still higher than Q12019 Volume of transaction 1st quarter residential 70,000 transaction 57,750 60,000 53,923 52,275 52,195 47,034 50,000 40,000 30,000 20,000 10,000 0 2023 2022 2021 2020 2019 Y
Slide 18: Overhang & Unsold Under Construction Units
Overhang & Unsold Under Construction Units (2Q2022 to 1Q2023) Units 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Y-o-Y Malaysia K. Lumpur Selangor Johor P. Pinang Kedah Overhang -14.7% 20.9% 5.4% -17.8% -41.2% -71.2% Unsold Under Const. -19.0% -16.0% -32.1% -31.0% -1
Slide 19: Outlook
Outlook 19
Slide 20: Outlook 2H2023
Outlook 2H2023 Property launches for 2H2023 RM0.7bn (6M2023 sales: RM617m) On-going efforts to improve the return on assets (ROA) Increasing the usage of industrialised building systems (IBS) Future cashflow backed by unbilled sales (RM1.5bn) Expanding coworking spaces by about 52,000 sq ft 20
Slide 21: 2H2023 Pipeline Launches
2H2023 Pipeline Launches Entirely residential launches in 2H2023 of RM0.7 bn (full year RM1.5 bn) Northern Sungai Petani Highrise: Landed Bukit Banyan (Expansion), Sungai Landed Bukit Banyan, Sungai Petani Petani 11% High rise Landed Residential Affordable Landed Homes RM0.1mil 89% RM0.6 bn RM0.7 bn
Slide 22: The Ashwood (Next to The Atrium)
KL A The Ashwood (Next to The Atrium) High rise Residential Jalan Ampang Subje ct Site Artist Artist Impression Impression Artist Impression Unique Selling Points Launching in 2H 2023 ▪ 312 units of condominiums and duplexes, and 12 units of low-rise villas on a 3.59 acres of freehold land ▪ Serene,
Slide 23: Q&A
Q&A Jeffrey Chew Sun Teong Foong Poh Seng Group Chief Executive Officer Chief Financial Officer Benjamin Teo Chee Siew Pin Deputy Group Chief Executive Officer Chief Executive Officer, Paramount Property 23
Slide 24: Appendices
PARAMOUNT Z Appendices
Slide 25: Diversified Landbank & GDV (30 June 2023)
Diversified Landbank & GDV (30 June 2023) Remaining Gross Remaining Development Period Project Status Undeveloped Lands GDV* (Acres) (RM’m) Start End Bukit Banyan, Sungai Petani On-going 54.7 314 2012 2027 Batu Kawan, Penang On-going 13.6 1,258 2016 2030 Bukit Minyak, Penang On-going 0 157 2023 2025
Slide 26: Inventories (30 June 2023)
Inventories (30 June 2023) Inventories down by 3% Vs 31 Dec 2022; 100% are commercial properties 31 Dec 30 June 2023 Projects 2022 Cost Details As at Cost RM’m RM’m 35 35 Central • Stratified commercial lots Leased to Co-labs Coworking (carrying value about RM20m) 11 11 • Sales gallery - * • Project
Slide 27: Group Debt/Total Equity (D/E) Ratio
Group Debt/Total Equity (D/E) Ratio 30 June 2023 31 Dec 2022 (Unaudited) (Audited) RM’m RM’m Borrowings 963.7 1,015.2 Cash & bank balances 296.1 331.1 Total equity* 1,604.5 1,665.0 Gross D/E ratio (times) 0.60 0.61 Net D/E ratio (times) 0.42 0.41 Weighted average interest rate (%) - floating 4.70 4.
Slide 28: Disclaimer
Disclaimer Statement Regarding Unaudited Financial Information The unaudited financial information set forth above is preliminary and subject to adjustments and modifications. Disclaimer on Forward-Looking Statements This presentation may contain forward-looking statements that involve risks and unc
Slide 29: Thank You
Thank You www.pcb.my 29
Paramount Corporation Berhad — H1 2023 Earnings Presentation on 6ix