Paramount Corp. Bhd. · MYX:PARAMON
Paramount Corp. Bhd — H1 2021 Earnings Presentation
33 slides from Paramount Corp. Bhd's earnings presentation, Sep 6, 2021
Slide 1: Investor Relations & Media Presentation 1H2021 Results
Investor Relations & Media Presentation 1H2021 Results 6 September 2021 1
Slide 2: Our Legacy
PARAMOUNT A TRIBUTE TO THE LATE D, Our Legacy "TEO CHIANG QUAN Dato’ Teo was an entrepreneur and a trailblazer who knew that the pleasure of adventure and risk-taking must be anchored by integrity and clear direction. Although he is no longer with us, his legacy will continue to live on. In the word
Slide 3: Board & Senior Executive Changes
Board & Senior Executive Changes Quah Chek Tin Chairman & Independent Non - Executive Director Benjamin Teo Deputy Group Chief Executive Officer 3
Slide 4: Overview 1H2021
PARAMOUNT Overview 1H2021
Slide 5: 1H2021 Highlights
1H2021 Highlights Revenue (continuing ops) PBT (continuing ops) Profit for the year RM279.3m RM21.0m RM11.1m YOY 50% YOY 1344% YOY 98% Property Sales Projects Launched Average Take-Up Rate Unbilled Sales Remaining Land Bank Debt to Total Equity Ratio Potential GDV RM7.6 bn Note: ^ Represented the pe
Slide 6: 1H2021 Corporate Developments
1H2021 Corporate Developments Entry into Fintech -Seek new source of earnings & to future proof business Invested RM13.7m in Omegaxis ➔ owns 63.5% Peer to Peer Financing of Peoplender (Fundaztic) Paramount 30%: P2P Venture 70% Business model scalable for local and regional growth Tremendous growth p
Slide 7: 1H2021 Corporate Developments (cont’d)
1H2021 Corporate Developments (cont’d) Applied for Digital Banking Licence -Seek new source of earnings & to future proof business Reimagining the future of banking 01 Asocioeconomic socially responsible bank contributing to development of the Everyone can bank Same day disbursement Customers dictat
Slide 8: Awards and Industry Recognitions
Awards and Industry Recognitions MSWG-ASEAN Corporate Governance Scorecard Award 2020 ✓ Ranked 13th among the top 100 public listed companies ✓ Ranked 1st for Excellence award for CG disclosure : Market Cap above RM300m to RM1bn ✓ Ranked 1st for Industry Excellence Award – Property segment 8
Slide 9: Awards and Industry Recognitions (cont’d)
Awards and Industry Recognitions (cont’d) ESG ratings of PLCs assessed by FTSE Russell Top 26-50% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell EdgeProp-ILAM Malaysia’s Sustainable Landscape Awards 2021 Hill park @ Bukit Banyan was the gold winner under the landscap
Slide 10: Operational Review
PARAMOUNT ~ Operational Review
Slide 11: Property Sales & Unbilled Sales
Property Sales & Unbilled Sales 62% Y-o-Y growth in sales for 1H2021; Unbilled sales steady at above RM1bn Q-o-Q Sales and unbilled sales 1H2021 Sales RM’ mil 1,200 Kemuning Sekitar26, ATWATER, Idaman, 1087 Selangor Selangor Selangor 1031 1033 2% 2% 1026 2% 3Q2020 4Q2020 1Q2021 Greenwoods Salak 2Q20
Slide 12: Take up rates and Launches in 1H2021
Take up rates and Launches in 1H2021 Encouraging take-up rate at 80%; on-going GDV at RM2.0bn# Take up 2H2021 Existing On-going Launched in 1H2021 rates Tentative Launches Type of projects by GDV As at 30 Locations development subsidiaries RM’m GDV Jun 2021 GDV Quarter %^ RM’m RM’m 138 - - 96 - Town
Slide 13: Co-labs Coworking & Scalable Malaysia
Co-labs Coworking & Scalable Malaysia New space at Tropicana Gardens Mall & maiden contribution from Scalable Malaysia Co-labs Coworking Scalable Malaysia Tropicana Gardens, Kota Damansara ▪ 5 outlets in Klang Valley ▪ 114,945 sq ft lettable ▪ Collaborative ecosystem & holistic Opened Jan 2021 work
Slide 14: Financial Review
PARAMOUNT ~ Financial Review
Slide 15: Financial Overview
Financial Overview Improved performance from low base of last year and less severe disruptions 1H2021 1H2020 Variance Revenue (RM’m) RM’000 RM’000 % 200 (restated)* 152 150 122 127 Revenue 279,225 186,313 +50 100 Operating profit b4 depreciation 40,426 16,809 +141 64 50 Depreciation (9,511) (8,904)
Slide 16: Segmental Analysis
Segmental Analysis Property division is the core contributor to the improved financial performance Group Revenue Group PBT RM279.2m RM186.3m RM21.0m RM1.5m RM’m RM’m 300.0 40.0 50% 250.0 30.0 1344% 200.0 20.0 150.0 10.0 100.0 0.0 50.0 -10.0 0.0 -20.0 1H2021 1H2020 1H2021 1H2020 Investment & Investme
Slide 17: Property Division
Property Division Geographically diverse property division remain resilient despite pandemic Yr on Yr ATWATER, Selangor • Revenue RM274.8m 51% 16% Sekitar26, Bukit Banyan, • PBT RM35.7m 2875% Selangor 1% Kedah 26% • PBT margin 13% Utropolis 12% Glenmarie, Selangor 4% Revenue Berkeley Uptown, ➢ Impro
Slide 18: Co-labs Coworking Division
Co-labs Coworking Division Revenue and EBITDA improved Yr on Yr Revenue 1H2021 • Revenue RM2.6m 42% • EBITDA* RM0.8m 170% • LBT RM2.4m 0% Scalable Malaysia 7% ➢ Maiden contributions from Tropicana Gardens outlet and Scalable Malaysia. ➢ All other 4 outlets recorded revenue Co-labs Coworking growth.
Slide 19: Financial Position (30 June 2021)
Financial Position (30 June 2021) Strong balance sheet and liquidity position Shareholders’ Net current Debt to Total funds assets YOY Equity 98% ratio* Cash & bank Unbilled Sales Net cashflow balances from operations * Total equity includes Private Debt Securities of RM249.0 m as at 30 June 2021) G
Slide 20: Outlook
Outlook 20
Slide 21: Property Sales 1Q2021
Property Sales 1Q2021 11% Y-o-Y growth in property sales volume No. of Transactions (Overall) 100,000 Q1/2021 Q4/2020 Q1/2020 91,260 90,000 80,696 80,000 72,867 70,000 60,200 60,000 52,275 47,036 50,000 40,000 30,000 17,357 20,000 15,905 15,127 6,485 5,763 10,000 6,099 5,020 1,455 4,958 4,440 1,459
Slide 22: Unsold Vs Overhang 1Q2021 (residential properties)
Unsold Vs Overhang 1Q2021 (residential properties) Unsold under construction declined Y-o-Y but overhang situation worsens 180,000 163,612 Residential Property Unsold Under Construction Overhang Incoming Supply 160,000 800,000 700,000 616,478 140,000 52,907 590,561 600,000 120,000 500,000 400,000 10
Slide 23: Outlook 2H2021
Outlook 2H2021 Outlook hinges on containment of COVID-19 Malaysian economy is projected to expand between 3.0% and 4.0% in 2021, hinges on containment of COVID-19 & vaccination program Low interest rate environment + exemption of stamp duty Steady unbilled sales of RM1.0bn Property launches for 2H20
Slide 24: 2H2021 Pipeline Launches (100% residential)
2H2021 Pipeline Launches (100% residential) RM944m launches; 57% from existing projects The Atrium, Kuala Lumpur Utropolis Batu Kawan, Penang Serviced Apartment Serviced Apartment High rise : Landed 3Q2021 Tower B, 3Q2021 Landed 32% High rise RM298m 68% RM646m Arinna Kemuning Utama, Shah Alam Bukit
Slide 25: The Atrium - off Jalan Ampang – “Embassy Row” (KL)
KL The Atrium - off Jalan Ampang – “Embassy Row” (KL) High rise residential Artist Impression Unique selling points Launching in 3Q2021 ➢ 241 units of serviced apartments on 0.91 acres of freehold land ➢ Located at the prestigious U-Thant enclave of KL which is surrounded by foreign embassies, high
Slide 26: Arinna, Kemuning Utama (Shah Alam)
Selangor Arinna, Kemuning Utama (Shah Alam) High rise Residential To KL To Shah Alam / / Federal Suban Highway g Subject Site Kota Kemuning To Cyberjaya / SKVE Artist Impression Unique selling points Launching in 4Q2021 ➢ 6.02 acre of freehold land for high rise development at Kemuning Utama in Shah
Slide 27: Q&A
1 2 3 Raise hand Unmute Lower hand Q&A Jeffrey Chew Sun Teong Benjamin Teo Foong Poh Seng Group Chief Executive Officer Deputy Group Chief Executive Officer Chief Financial Officer 27
Slide 28: Appendices
PARAMOUNT Appendices
Slide 29: Diversified Landbank & GDV (30 June 2021)
Diversified Landbank & GDV (30 June 2021) Remaining Gross Development Period Remaining Undeveloped Project Status GDV* Lands (RM’m) Start End (Acres) Bukit Banyan & BLM, Sungai Petani On-going 135.8 680 2012 2027 Northern Batu Kawan, Penang On-going 21.4 1,811 2016 2027 Kemuning Utama, Shah Alam On-
Slide 30: Inventories (30 June 2021)
Inventories (30 June 2021) Inventories down 22%; 87% as at 30 June was commercial properties 30 June 31 Dec Projects 2021 2020 Details As at Cost Cost Completed properties RM’m RM’m RM89m 41 46 • Stratified commercial lots Leased to Co-labs Residential Coworking (carrying 13% value about RM20m) Cent
Slide 31: Group Debt/Total Equity (D/E) Ratio
Group Debt/Total Equity (D/E) Ratio 30 June 2021 31 Dec 2020 (Unaudited) (Audited) RM’m RM’m Borrowings 968.0 954.2 Cash & bank balances 248.0 204.3 Total equity* 1,663.8 1,679.4 Gross D/E ratio (times) 0.58 0.57 Net D/E ratio (times) 0.43 0.45 Weighted average interest rate (%) - floating 3.47 3.45
Slide 32: 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 33: Thank You
Thank You www.pcb.my 33
Paramount Corporation Berhad — H1 2021 Earnings Presentation on 6ix