MAIN Market-listed property developer Paragon Globe Bhd has dished out a set of stellar financials for its 1Q FY3/2027 ended June 20, 2026 with the group’s net profit having soared 56.4% year-on-year (yoy) to RM24.94 mil (1Q 3/FY2026: RM15.94 mil).
Revenue during the period under review spiralled 69.8% yoy to RM94.46 mil yoy (1Q 3/FY2026: RM55.64 mil) while pre-tax profit surged 64.6% to RM33.58 mil (1Q 3/FY2026: RM20.4 mil) to bring the group’s basic earnings per share to 3.34 sen from 2.14 sen previously.
The Property Development segment was the primary earnings contributor. Segment revenue chalked up 67.6% to RM93.25 mil with pre-tax profit firming 65.4% to RM38.97 mil.
The performance reflected revenue recognition from land sales in Tanjung Kupang, sales of detached factories in Pekan Nanas and serviced apartments in Johor Bahru.
Gross profit notched up 60% to RM44.58 mil or a gross margin of 47.2% while administrative expenses decreased 6.7% to RM6.08 mil.
“Our 1Q results demonstrate the direct impact of our property development activities and strategic land sales,” commented Paragon Globe’s executive chairman Datuk Seri Edwin Tan Pei Seng.
“Generating RM136.7 mil in operating cash flow allows us to fund our ongoing expansion plans while maintaining liquidity.”
Added Tan:
The conditional disposal in Tanjung Kupang and our subsequent acquisitions in Sedenak reflect a deliberate realignment of our landbank.
We’re positioning the group to directly address the commercial and industrial demand emerging from the Johor-Singapore Special Economic Zone (JS-SEZ) and the broader digital infrastructure sector in Johor.
Net cash generated from the group’s operating activities reached RM136.79 mil for the quarter from that of a net operating cash outflow of RM3.53 mil a year earlier.
As of end-June 2026, cash and bank balances stood at RM185.86 mil. Total assets expanded to RM1.40 bil from RM1.14 bil as of end- FY3/2026. Shareholders’ equity rose in tandem to approximately RM502.0 mil to bring net assets per share to 67 sen from 64 sen previously.
The group further maintained a pre-tax profit margin of 35.5% for the quarter. The investment segment recorded revenue of RM1.22 mil which was generated primarily by rental income from a healthcare-related asset in Sepang.
During its 1Q FY3/2027, Paragon Globe through its wholly-owned subsidiary PGB Landmark Sdn Bhd entered a conditional sale and purchase agreement to dispose of approximately 65.28 acres of land in Tanjung Kupang to DayOne Data Centers Malaysia III Sdn Bhd for RM398.11 mil.
Subject to completion, this transaction is expected to provide financial flexibility for on-going developments, future land acquisitions, re-payment of borrowings and working capital.
Moreover, the group also held the ground-breaking ceremony for the PGB-GSP AutoPark in Iskandar Puteri whereby it advanced its partnership with GSP Automotive Group into physical development.
Subsequent to the quarter, Paragon Globe expanded its development pipeline in Sedenak, Kulai through a completed initial land acquisition of RM13.86 mil and a proposed acquisition of additional beneficial interests for RM127.28 mil. The Sedenak land is located within the Kulai-Sedenak flagship zone of JS-SEZ.
Moving forward, the group expects factors such as the JS-SEZ, the Johor Bahru-Singapore RTS Link, cross-border investment flows and digital infrastructure developments to continue supporting property demand in Johor.
Following this, it will focus on project execution, fulfilling conditions for its corporate exercises and managing capital deployment.
At the close of yesterday’s (Aug 28) market trading, Paragon Globe was unchanged at 74 sen with no share traded, thus valued the company at RM553 mil. – Aug 29, 2026
