Paramount Corp. Bhd. · MYX:PARAMON
Paramount Corp. Bhd — FY2023 Earnings Presentation
37 slides from Paramount Corp. Bhd's earnings presentation, Mar 5, 2024
Slide 1: Investor Relations & Media Presentation FY2023 Results
Investor Relations & Media Presentation FY2023 Results 5 March 2024 1
Slide 2: FY2023 Highlights
PARAMOUNT FY 2023 Highlights
Slide 3: 2023 Achievements
2023 Achievements 3rd Yr Growth 2nd Yr Sales 1st Third year Yr Revenue double digit Second year growth in more than revenue and RM1.0 bn is a RM1 bn GDV PBT new record
Slide 4: Scaling up for steady growth
Scaling up for steady growth RM’ mil 5-Yr Launches, Sales, Revenue, PBT and ROE (2019 – 2023) % 45.0 1,400 19% 40.0 ▪ Revenue: 3-Yr CAGR of 19.4% 1,200 24% 35.0 ▪ PBT: 3-Yr CAGR of 36.6% 1,000 15% 30.0 ▪ ROE on uptrend from FY2021 800 25.0 600 20.0 15.0 Revenue Y-o-y 400 24% 50% movement 37% 10.0 20
Slide 5: Gross Div Per Share & Payout Ratio
Gross Div Per Share & Payout Ratio Dividend Special Dividend Payout Ratio Net assets per share sen Payout ratio Total Dividends (2019 – 2023) = 66 sen @ 31 Dec 2023 35 200% ** 180% 186% RM2.30 30 160% 25 140% Market price per share 120% @ 26 Feb 2024 20 # 29 100% RM1.02 15 40% # 80% 12.0 38% 53% 10
Slide 6: Operational Review
PARAMOUNT ~ Operational Review
Slide 7: 2023 Property Sales & Unbilled Sales
2023 Property Sales & Unbilled Sales Record sales at RM1,120 million; unbilled sales remained high at RM1,428 million Sales and unbilled sales FY2023 Sales RM’ mil Sekitar26 and Arinna Kemuning Sejati Lakeside, 1,600 Utama, Selangor Selangor * Bukit Banyan, 1,428 6% 1,402 Greenwoods Salak Kedah 1,40
Slide 8: On-going products – take up rate & launches
On-going products – take up rate & launches Y-o-y 9% increase in GDV of on-going projects to RM3.5 bn# on the back of 10 projects 2 On-going L Existing GDV as at GDV launched in FY2023 Take up rates a Type of projects by 31 Dec as at 31 Dec Locations development subsidiaries 2023 GDV 2023^ RM’m Quar
Slide 9: Co-labs Coworking Expansion
Co-labs Coworking Expansion Ken TTDI, Taman Tun Dr Ismail The Five, Damansara Heights 9
Slide 10: Co-labs Coworking & Scalable Malaysia
Co-labs Coworking & Scalable Malaysia Average occupancy declined slightly to 66% on the back of space expansion by 37,000 sq ft Co-labs Coworking as at 31 Dec 2023 Average occupancy Ken TTDI Shah Alam 20% rate @ 31/12/2023 22% 66% (31/12/2022: 70%) Starling 152,000 sq ft Plus 11% Naza Tower 6 spaces
Slide 11: Financial Review
PARAMOUNT ~ Financial Review
Slide 12: Financial Overview
Financial Overview Y-o-y increase in revenue and PBT by 19% and 24%, respectively FY2023 FY2022 Variance RM’000 RM’000 % Unaudited Audited Revenue 1,012,252 847,464 +19 Operating profit before depreciation & interest 174,760 138,855 +26 Depreciation (23,325) (25,152) -7 Net interest expense (27,291)
Slide 13: Property Division
Property Division Improvements due to more on-going projects, higher work progress & project costings savings Paramount Yr on Yr The Atrium, Kuala Palmera, Penang Arinna Lumpur 3% Bukit Banyan, • Revenue RM973.7m Kemuning 18% Utama, Selangor 7% Kedah 6% 15% • PBT RM140.1m 34% • PBT margin 14% 1% Utr
Slide 14: Coworking Division
Coworking Division Revenue improved 39% with four consecutive quarters of profit Yr on Yr Revenue FY2023 • Revenue RM13.1m* 39% • PBT RM2.0m 433% ➢ Increase in coworking space by 32% in 4Q2023 [Ken TTDI (new) + expansion of Scalable Tropicana Gardens space] Malaysia 21% ➢ All 6 spaces contributed to
Slide 15: Investment & Others Division
Investment & Others Division Revenue improved 65% ; Losses widen on lower contribution from associates Yr on Yr Revenue FY2023 • Revenue RM27.1m 65% Mercure Kuala • LBT RM11.8m 1270% Dewakan Lumpur Glenmarie 23% 46% ➢ Improvement in revenue were contributed by Mercure Kuala Lumpur Glenmarie hotel, i
Slide 16: Financial Position (31 Dec 2023)
Financial Position (31 Dec 2023) Strong balance sheet and liquidity position Shareholders’ Net current Debt to Total funds assets YOY Equity 98% ratio* RM1.4bn RM676m Gross 0.51x Net 0.38x Cash & bank Unbilled sales Net cash from balances operating activities RM203m RM1.4bn RM244m * Included Private
Slide 17: Industry Overview
PARAMOUNT Industry Overview
Slide 18: Residential Property Sales
Residential Property Sales (2017 – 9M2023) RM94.276 bn Unit 250,000 243,190 RM72.407bn RM76.902bn RM68.463bn RM68.748bn 209,295 RM65.874bn 194,684 197,385 191,354 198,812 195,674 RM73.14 bn 200,000 183,534 165,392 171,844 162,423 156,738 RM73.615bn 152,626 RM57.378bn 150,000 RM55.026bn RM55.834bn RM
Slide 19: 10-Year Completion and Starts (Incoming Supply)
10-Year Completion and Starts (Incoming Supply) Unit Residential & serviced apartments 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Completion 72,962 81,639 107,74 80,850 116,77 109,66 124,70 129,18 94,123 88,606
Slide 20: Overhang Trend & Ageing
Overhang Trend & Ageing Trend of Overhang & Unsold Under Construction Units (3Q2022 – 3Q2023) Units 180,000 160,000 Unsold Under Construction Overhang 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 3Q2023 Vs 3Q2022 Y-o-Y Malaysia K. Lumpur Selangor Johor P. Pinang Kedah Overhang -11.03% -5.56
Slide 21: Outlook 2024
PARAMOUNT Outlook 2024
Slide 22: Outlook FY2024
Outlook FY2024 Property launches for FY2024 RM2.4bn Improve operational efficiencies Land bank replenishment with higher IRR Future cashflow backed by unbilled sales (RM1.4bn) Boosting occupancy and expanding coworking spaces 22
Slide 23: FY2024 Pipeline Launches
FY2024 Pipeline Launches RM2.4 bn launches; all from existing project locations 2024 Indicative Launches Commercial: High rise : Landed 1H2024 The Ashwood Condominiums, U-Thant, KL duplexes & low-rise Commercial 1% Landed villas RM34m 24% The Atera (Phase 2) Transit-oriented RM558m 1H2024 Petaling J
Slide 24: The Ashwood (Next to The Atrium)
KL High Rise The Ashwood (Next to The Atrium) Residential Jalan Ampang Subject Site Artist Artist Impression Impression Artist Impression Unique Selling Points Launching in 1H 2024 ▪ 342 units of condominiums and duplexes, and 12 units of low-rise villas on a 3.59 acres of freehold land ▪ Serene, pr
Slide 25: Uptown Residences 2 @ Berkeley Uptown
Klang High Rise Residential Uptown Residences 2 @ Berkeley Uptown Mix Development Artist Artist Impression Impression Unique Selling Points Launching in 1H 2024 ▪ Nestled on 7.37-acres of freehold land, Uptown Residences 2 features 1,086 units of serviced apartments and offers a lush resort-inspired
Slide 26: The Atera – Phase 2
PJ Transit Oriented Mix The Atera – Phase 2 Development Asia Jaya LRT Station Artist Artist Federal Highway Impression Impression Artist Impression Unique Selling Points Launching in 1H 2024 ▪ The phase 2 of this TOD development consist of 876 units of serviced apartments and 5 retail lots. The serv
Slide 27: Sejati Residences Phase 4
Cyberjaya Sejati Residences Phase 4 Landed Strata Development Jalan Ampang Artist Impression Artist Artist Unique Selling Points Impression Impression Launching in 1H 2024 ▪ This 10.35-acre land of freehold development consists of a total 174 units of terrace houses (22’x50’, 22’x55 and 22’x70’) sur
Slide 28: Greenwoods - Senna
Sepang Cluster Townhouses Greenwoods - Senna Jalan Ampang Subject Greenwoods Site Senna Artist Impression Artist Artist Impression Impression Unique Selling Points Launching in 1H 2024 Artist Impression ▪ A 12-acre freehold land, Greenwoods Senna consists of 368 units of 34’x65’/70’/75’ – 44’x65’/70
Slide 29: FY2023 Highlights
FY2023 Highlights Revenue PBT Profit attributable to shareholders RM1,012m RM130.2m RM82.8m YOY 19% YOY 24% YOY 38% Property Sales Properties Launched Average Take-Up Rate RM1,120m RM886m 81% ^ YOY 1% YOY 27% 31 Dec 2022: 71% Unbilled Sales 2nd Interim Gearing RM1.4bn Dividend YOY 2% Gross 0.51x 4 s
Slide 30: Q&A
Q&A Jeffrey Chew Sun Teong Benjamin Teo Group Chief Executive Officer Deputy Group Chief Executive Officer Foong Poh Seng Chief Financial Officer 30
Slide 31: Appendices
PARAMOUNT Z Appendices
Slide 32: Diversified Landbank & GDV (31 Dec 2023)
Diversified Landbank & GDV (31 Dec 2023) Remaining Gross Remaining Development Period Project Status Undeveloped Lands GDV* (Acres) (RM’m) Start End Bukit Banyan, Sungai Petani On-going 25.9 278 2012 2027 Batu Kawan, Penang On-going 13.6 1,205 2016 2030 Bukit Minyak, Penang On-going 0 68 2023 2025 N
Slide 33: Inventories (31 Dec 2023)
Inventories (31 Dec 2023) Inventories increased by 5% Vs 31 Dec 2022; 93% are commercial properties 31 Dec 31 Dec Completed properties Projects 2023 2022 Details RM61m As at Cost Cost RM’m RM’m 35 35 Residential • Stratified commercial lots 7% Leased to Co-labs Coworking Central (carrying value abou
Slide 34: Group Debt/Total Equity (D/E) Ratio
Group Debt/Total Equity (D/E) Ratio 31 Dec 2023 31 Dec 2022 (Unaudited) (Audited) RM’m RM’m Borrowings 828.1 1,015.2 Cash & bank balances 202.7 331.1 Total equity* 1,630.5 1,665.0 Gross D/E ratio (times) 0.51 0.61 Net D/E ratio (times) 0.38 0.41 Weighted average interest rate (%) - floating 4.85 4.5
Slide 35: 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 ➢ Ranked 12th ➢ Family-Friendly Award (Landed) W
Slide 36: 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 37: Thank You
Thank You www.pcb.my 37
Paramount Corporation Berhad — FY2023 Earnings Presentation on 6ix