Latest news with #JeffreyChew
The Star
a day ago
- Business
- The Star
Paramount expects property market to remain soft in 2H25
Paramount Corp Bhd group chief executive officer Jeffrey Chew. PETALING JAYA: Property developer Paramount Corporation Bhd expects the property market to remain soft in the second half (2H) of 2025 without any catalyst to boost it amid concerns over US tariffs as well as rising costs due to the fuel subsidy rationalisation and Sales and Service Tax (SST) expansion. Group chief executive officer and director Jeffrey Chew Sun Teong said that to date, the company has managed to achieved RM600 million sales out of the targeted RM1.6 billion sales for this year as buyers are holding back due to the rising cost of living. "Everybody is concerned over the US tariffs. Then, with the impending cost escalation because of the fuel subsidy rationalisation and SST (expansion), people are holding back a bit. So sales are a little softer. "There is a possibility that we may have to revise our sales target (for this year),' he told a press conference after the company's investor relation and media presentation here today. Chew said the food and beverage (F&B) segment is expected to be the second largest contributor to the Paramount group's earnings after the property segment. Paramount Corporation yesterday announced its unit Venice Concepts Sdn Bhd's proposed acquisition of a 28 per cent stake in Envictus International Holdings Ltd from JAG Capital Holdings Sdn Bhd for S$38.33 million (RM126.32 million). Singapore-based Envictus is the franchise holder of Texas Chicken and San Francisco Coffee in Malaysia as well as a wholesaler of foodstuff and frozen food. It is also involved in the dairies segment through the manufacturing and distribution of sweetened and evaporated creamer. According to Paramount Corporation's filing with Bursa Malaysia, Envictus recorded an unaudited net profit of RM16.11 million on revenue of RM369.78 million for the six-month period ended March 31, 2025. Paramount owns two restaurants in Kuala Lumpur, namely Dewakan -- Malaysia's only 2-Michelin Star restaurant for two consecutive years since 2024 and a Michelin Green Star recipient in 2025 -- and Bidou, a newly established restaurant offering classical French cuisines. Commenting on the San Francisco Coffee business, Chew said the company sees an opportunity to turn the coffee outlets into fast food and quick snack cafes as the coffee market is becoming oversaturated with more newcomers coming in. "The food (at San Francisco Coffee) is quite good. There are a lot of variety of wraps and some pastries, but a lot of people are not aware of it. "So we think that they have to work on some plans to actually improve themselves and reposition. Hopefully, it can be a bit more profitable in the future,' he said. - Bernama
New Straits Times
a day ago
- Business
- New Straits Times
Property market to stay subdued in H2, says Paramount chief
KUALA LUMPUR: Paramount Corporation Bhd expects subdued property market conditions to persist in the second half of the year, even as Bank Negara Malaysia cut the overnight policy rate to 2.75 per cent in July. Its group chief executive officer, Jeffrey Chew, said that while the rate cut offers some relief, it is unlikely to significantly boost homebuying sentiment in the short term. "A 25-basis-point cut helps both in terms of our borrowing cost and consumer affordability but it's not enough to drive major changes in buying behaviour," he said at Paramount's investor and media briefing today. Chew said a single rate cut is unlikely to have a major impact on the market, but if there are two more reductions or a larger 50-basis-point cut, it could potentially act as a meaningful catalyst for the property sector. "There are several challenges at play with the fuel subsidy, tariffs, and Sales and Services Tax implementation, which are making buyers more wary. "While we do not foresee a major downturn, we also do not see strong catalysts emerging in the second half," he said. Chew said that for 2025, the developer had expected some growth, but uncertainties, particularly regarding potential actions by the US president, may prompt a revision of its sales targets. As of July, Paramount had achieved around RM600 million in property sales, slightly more than halfway towards its RM1.5 billion target for the year. A key contributor to the shortfall is a planned RM170 million disposal of a commercial tower, which Chew said has yet to materialise due to weak investor appetite in the commercial property market. "We are focusing more on getting tenants in instead of trying to sell," he added. Chew said that property will remain the cornerstone of Paramount's business, just as it has been for the past fifty years. He added that over the next 10 to 20 years, the company continues to see solid growth prospects in the sector and targets property to account for around 70 per cent of its total business, both in Malaysia and abroad.
The Star
a day ago
- Business
- The Star
Paramount buys stake in S'pore F&B company
PETALING JAYA: Paramount Corp Bhd is forking out some RM126.32mil (SG$38.33mil) to acquire a 28% stake in Singapore-based food and beverage (F&B) company, Envictus International Holdings Ltd, from JAG Capital Holdings Sdn Bhd. Datuk Johari Abdul Ghani, who is Minister of Plantation and Commodities, controls JAG Capital. In a filing with Bursa Malaysia yesterday, Paramount said the deal was carried out through its wholly-owned subsidiary, Venice Concepts Sdn Bhd, and will be satisfied via a combination of bank borrowings and internally generated funds. Envictus is involved in the F&B industry particularly in food services, trading and frozen food, and dairies segments. It manages brands such as Texas Chicken and San Francisco Coffee within its food services division. Paramount Group CEO Jeffrey Chew said in a statement, 'The acquisition of a significant stake in Envictus marks a timely and strategic step forward for Paramount's continuous growth. 'We see potential in the evergreen F&B sector, and this acquisition will diversify our earnings base.' As at July 28, Paramount owned two restaurants in Kuala Lumpur, namely, Dewakan, Malaysia's only 2-Michelin Star restaurant for two consecutive years since 2024 and a Michelin Green Star recipient in 2025, as well as Bidou, a newly established restaurant offering classical French cuisine. Paramount noted that following the divestment of its education business in 2018, it has been 'on the look-out for opportunities to participate in new business interests to widen its earnings base', both locally and outside of Malaysia, all of which are within its 2020 to 2025 strategic plan. The board has, in its recent review of Paramount's next five-year plan (2026 to 2030), agreed to extend its strategy to future-proof its business by investing in alternative businesses with the potential to become Paramount's new core businesses. Meanwhile, on another note, TA Research said Paramount's restructuring proposals announced on July 28 reflected prudent capital management, which would allow the company to preserve its strategic interest in its campus assets while deferring cash outflows. However, the research house is keeping a neutral stance on the developments, citing a lack of material near-term earnings impact for Paramount. Paramount announced a series of proposals revolving around Dynamic Gates Sdn Bhd (DGSB), a special-purpose vehicle that holds three university campuses – Glenmarie, Batu Kawan and George Town – which was acquired in a 2018 RM456mil securitisation deal. DGSB remains consolidated into Paramount's financials. A key component of the plan is the redemption of RM126mil in cumulative redeemable non-convertible preference shares (CRNCPS) issued by DGSB. Instead of a cash settlement, Paramount will issue new perpetual redeemable preference shares (RPS), which offer only discretionary dividends and rank above ordinary shares in payout priority. TA Research said the transaction 'avoids cash redemption, given the absence of distributable profits in DGSB.' Additionally, Paramount plans to extend by seven years the CRNCPS subscription, master lease, and call/put option agreements to align with DGSB's proposed medium-term notes (MTN) extension. These MTNs were originally raised to partially fund DGSB's RM294mil campus acquisition from Paramount. Another notable change involves a repricing of the call and put options to reflect updated market valuations. According to independent valuer Jones Lang Wootton, the Glenmarie campus is now worth RM281mil, Batu Kawan RM105mil and George Town RM70mil – bringing the total valuation of the assets back to RM456mil. Furthermore, Paramount, through its subsidiary Janahasil, will extend the lease with DGSB by seven years. Monthly lease payments will gradually rise from RM1.35mil to RM1.43mil, translating to a step-up in lease yield from 3.55% to 3.77%. The campuses will continue to be sub-leased to University of Wollongong Malaysia and its affiliates. TA Research pointed out that the extension of the lease and option agreements enhanced long-term optionality and aligned with the extended MTN maturity, underscoring that Paramount is focused on preserving strategic flexibility while deferring cash outflows. The securities firm sees potential upside in the proposals should Paramount provide more visibility on 'the future income contribution from the RPS and the group's broader asset monetisation and capital allocation plans'. TA Research maintained its earnings forecasts for the financial years ending 2025 to 2027 and reiterated a 'buy' call with a target price of RM1.48 per share, representing a 36.7% upside from its last traded price of RM1.08. The proposals are subject to shareholder approval at an upcoming emergency general meeting and are expected to be completed by the first quarter of 2026.
New Straits Times
2 days ago
- Business
- New Straits Times
Paramount buys 28pct stake in Singapore's F&B firm Envictus for RM126.3mil
KUALA LUMPUR: Paramount Corporation Bhd has signed a share purchase agreement to buy a 28 per cent stake in Singapore-listed Envictus International Holdings Ltd for S$38.33 million (RM126.3 million). Paramount said in a Bursa Malaysia filing that the acquisition was made via its wholly-owned Venice Concepts Sdn Bhd. It is buying 85.17 million shares from JAG Capital Holdings Sdn Bhd. Envictus, which operates across Malaysia's food and beverage (F&B) sector, manages a portfolio of businesses under three core divisions namely food services, trading and frozen food, and dairies. Its food services division operates 100 Texas Chicken outlets and 50 San Francisco Coffee stores nationwide. The trading and frozen food segment includes Pok Brothers, a major food distributor to restaurants, while the dairies arm handles the sale of SuJohan brand creamers. Paramount said the investment represents a strategic move in diversifying its portfolio and marks its expansion into the high-growth F&B sector. "Accordingly, the proposed acquisition will enable Paramount to leverage on a full range of F&B offerings, both upstream (wholesaler and distributor of food produce) and downstream (restaurant operations), to support long-term earnings growth," the filing said. "This marks a timely and strategic step forward for Paramount's continuous growth," said Paramount group chief executive officer Jeffrey Chew. Following the completion of the deal, Paramount will become one of the controlling shareholders of Envictus. Paramount, which divested its education business in 2018, has since expanded into digital start-ups and overseas property projects. It currently owns two restaurants here namely Dewakan, Malaysia's only two-Michelin Star restaurant, and Bidou, which serves classic French cuisine. The proposed acquisition is expected to be completed by Aug 7 and will be funded via a combination of internal funds and bank borrowings. RHB Investment Bank Bhd is the principal adviser.
The Sun
24-06-2025
- Business
- The Sun
Paramount CEO happy with Q1 sales momentum
PETALING JAYA: Paramount Corporation Bhd posted a profit before tax (PBT) of RM22.6 million (Q1'24: RM17 million) for the first quarter of 2025 (Q1'25) supported by revenue of RM217.8 million (Q1'24: RM172.6 million). Profit attributable to shareholders rose by 87% to RM14.4 million (Q1'24: RM7.7 million). The property segment remains the group's primary revenue driver, contributing RM205.9 million in Q1'25, a 27% increase from the RM161.8 million recorded in Q1'24. The three biggest contributors were The Atera, a transit oriented mixed development in Petaling Jaya; Utropolis Batu Kawan, a mixed development in Penang; and Paramount Palmera Industrial Park, also in Penang. Correspondingly, PBT for the property segment was 40% higher at RM32.2 million (Q1'24: RM23 million) underpinned by higher revenue. Boosted by broader product offerings available for sale after a record RM2.4 billion launches in 2024, property sales more than doubled to RM230 million in Q1'25, from a low base of RM101 million the year before that was impacted by deferred launches. The top contributors in Q1'25 sales were The Ashwood at U-Thant in Kuala Lumpur, followed by The Atera in Petaling Jaya, which is also Paramount's largest on-going project, and Paramount Embun Hills, a new development next to the Bukit Mertajam Forest Park. Paramount Group CEO Jeffrey Chew said he was pleased with the sales momentum to date, noting that The Ashwood at U-Thant, Kuala Lumpur, had reached 90% sales as of mid-May 2025. 'Meanwhile, The Atera, which is Paramount's largest on-going project, is doing well with Phase 1 achieving 91% sales as of mid-May. In response to steady demand, we have launched Lumeo, the second phase.' 'In Bukit Mertajam, The Shoppes at Paramount Embun Hills, comprising 30 units of shop offices, were fully booked within an hour of its launch in January 2025. We believe its strong value proposition as a vibrant lifestyle hub by the hills and its strategic location along Jalan Kulim, contributed to the overwhelming response.' Paramount had launched RM62.4 million worth of properties in Q1'25 (including Paramount Embun Hills) as part of its planned RM1.4 billion pipeline for the entire year. 'We look forward to a strong response when we launch Phase 1 of its residential component in the middle of the year, with its cluster and double storey terrace homes. Paramount Embun Hills is a strata development, gated and guarded, and has been master-planned for GreenRE certification.' Chew added that Paramount Property's sustained success as the people's developer was due to its ability to consistently deliver strong value propositions. 'At Utropolis Batu Kawan, Penang, we offered yet another compelling value proposition with the launch of Seiras Residences in May 2025, the fifth phase of our high-rise residential homes, featuring dual- and triple-key layouts.' 'Seiras Residences' triple-key layout offers three self-contained living spaces, each with a private balcony and en-suite bathroom, ideal for homeowners seeking both privacy and rental income. This unique co-living concept is the first in the northern region of the peninsula,' he said. Chew said the group will strive to meet its 2025 sales target of RM1.5 billion along with on-going projects contributing to the group financial performance for the financial year ending Dec 31, 2025. The group's unbilled sales (RM1.6 billion as at March 31, 2025) will provide near-term visibility on the group's cashflow though the conversion into billings will largely depend on work progress. The Q1'25 co-working segment's revenue of RM6.6 million was 75% higher year-on-year (Q1'24: RM3.8 million). Despite the higher revenue, the co-working segment maintained a loss before tax (LBT) of RM0.5 million in Q1'25, unchanged from the previous year. The loss was largely due to rental costs incurred for the NU Sentral space—the business's eighth co-working outlet—during its pre-opening renovation phase, as the space only commenced operations in May 2025. The segment also saw an increase in headcount at Scalable Malaysia, its design and build business that has been growing. Chew said he was optimistic about the newly opened co-working space at NU Sentral Shopping Centre, noting its strategic location adjacent to the KL Sentral transportation hub.
