AmInvest thinks this property player’s prospects are of Paramount importance
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NewsTranscript
00:00 As earnings season comes to a climax, Aminvest Research upgrades its call on property developer
00:06 Paramount Corp from hold to buy, and also upgraded its fair value from $0.84 to $0.01,
00:13 which is $0.06 more than its last close.
00:15 A recap, Paramount's first half core net profit of $38 million came in above expectations
00:20 for both Aminvest and The Street.
00:22 In the first half, Paramount secured new sales of $617 million, attaining 51% of its FY20
00:29 23 sales target of $1.2 billion.
00:33 Paramount's first half launches of $820 million accounted for 53% of its FY23 targeted launch
00:40 of $1.5 billion.
00:43 Going into the second half, Paramount aims to launch four projects with an estimated
00:47 gross development value of $714 million, including the Ashwood Rumah Indaman in Greenwood, Salaperdana
00:54 and Bukit Banyan.
00:56 The average take-up rate for ongoing projects as at June 30 improved to 73% versus 67% as
01:03 at 31st March, given the stronger sales from most of its projects.
01:07 In the second half, Paramount plans to expand its existing Tropicana Gardens outlet and
01:12 introduce two new spaces in the Klang Valley, capitalizing on rising demand for co-working
01:16 and flexible office solutions.
01:19 Only two houses cover Paramount Corp, the other being TA Securities, which has a RM1.17
01:24 target price.
01:25 The target price comes in at RM1.09, which implies a possible 16% upside from current
01:31 levels.
01:32 [Music]