MAIN Market-listed property developer Paragon Globe Bhd (PGB) (formerly Goh Ban Huat Bhd) has rolled out its strongest-ever financial performance during its 3Q 3/FY2025 ended Dec 31, 2024 buoyed by the group’s robust business fundamentals and strategic growth initiatives.
For the quarter under review, the Johor Baru-based Paragon posted a significant jump of 318.5% year-on-year (yoy) to RM70.64 mil (3Q FY32024: RM16.88 mil).
In tandem with this, Paragon’s net profit rebounded to RM37.43 mil from a net loss position of RM2.15 mil in 3Q FY32024.
The strong performance was primarily driven by strategic land disposals in Desa Cemerlang and continued sales of detached factories and shop offices in Pekan Nenas (both townships are located in Johor).
“Our exceptional results reflect the strength of our business strategy where we unlock the value of our land bank while driving sustainable property development,” commented Paragon’s executive chairman Datuk Seri Edwin Tan Pei Seng.
“The strong revenue growth and improved earnings underscore our focus on executing high-value projects that contribute to the region’s economic expansion.”
For the cumulative nine-month period of FY3/2025, Paragon’s revenue reached RM154.72 mil or a climb od 258.8% yoy (9M FY3/2025:RM43.12 mil while its net profit soared to RM52.25 mi from a net loss of RM2.56 mil in FY3/2024.
Moving forward, Parragon’s financial strength is further supported by a positive net cash flow generated from its operating activities which amounted to RM17.9 mil during its 9M 3/FY2025 period from a negative cash flow of RM124.7 mil in its 9M FY3/2024.
All in all, the property development segment remained the group’s primary revenue contributor, accounting for 99.9% of total revenue.
The strong financial results were mainly attributed to the successful disposal of 67.6 acres of industrial land in Desa Cemerlang as well as sales of detached factories and shop offices in Pekan Nenas, Johor.
Looking ahead, Paragon is focused on delivering its upcoming projects, including Calia Residences and The Iconic within the Johor Bahru township as well as the Kensington Parkview in Iskandar Puteri.
These projects are expected to elevate the group’s presence in Johor’s premium property market.
Additionally, the group’s Pekan Sentral Phase 3 and Detached Factories Type D2 projects in Pekan Nenas are progressing well with up to RM38 mil from the land disposal proceeds
With the Johor-Singapore Special Economic Zone (JS-SEZ) initiative unlocking high-value investments, Johor is rapidly evolving into a regional economic powerhouse by attracting multinational companies, foreign direct investments (FDIs) and skilled talent.
At the close of today’s (Feb 28) trading, Paragon was down 1.5 sen or 2.22% to 66 sen with 3.16 million shares traded, thus valuing the company at RM493 mil. – Feb 28, 2025
