JOHOR BAHRU: Paragon Globe Bhd posted positive earnings for Q4 ended March 31, 2026 (FY26), highlighting a structural transition from a conventional property developer into an integrated industrial ecosystem platform.
This strategic shift is anchored by the group’s new partnership with GSP Automotive Malaysia Sdn Bhd, a subsidiary of the Shanghai-listed GSP Automotive Group (GSP).
Under the strategic partnership agreement, Paragon Globe will act as the master developer and ecosystem integrator for an automotive-focused industrial cluster, PGB-GSP AutoPark, in Iskandar Puteri, Johor.
The platform will leverage GSP’s global supply chain network, with selected manufacturing units targeted for GreenRE certification to capture the growing regional demand for sustainable industrial infrastructure.
Executive chairman Datuk Sri Edwin Tan Pei Seng said FY25 was a high-water mark on the back of the RM337.30 million Johor land disposal to Bridge Data Centres Malaysia.
“FY26 is a different kind of year — we are building the next phase. The landbank and the investment property base have grown, and we have begun laying the foundation for our industrial ecosystem with GSP,” he said.
The group reported full-year revenue of RM154.85 million, down from RM306.26 million in FY25, as top-line figures normalised following the completion of major historical land-sale recognitions in Desa Cemerlang.
Despite the lower top line, gross profit margin held steady at 49.6%.
Full-year PBT stood at RM88.70 million, while PATAMI came in at RM69.44 million.
The group’s quality of earnings was particularly evident in Q4 FY26.
While Q4 revenue moderated to RM12.63 million due to the high-base effect of land sales in the prior year’s corresponding quarter, PBT rose 187.1% sequentially against Q3 FY26 to RM35.94 million.
This quarter-on-quarter expansion was driven by the Investment segment, which turned around from a loss-making position in FY25 to a PBT of RM28.13 million in the final quarter of FY26.
Paragon Globe’s balance sheet metrics strengthened significantly over the period.
Total assets expanded 45.9% to RM1.14 billion.
The group’s investment property base increased 67.9% to RM365.38 million, reflecting active capital expenditure deployment and valuation gains.
Furthermore, total inventories increased to RM663.12 million, representing a substantial build-up of land and development assets slated for monetisation and execution starting in FY27.
Demonstrating disciplined capital recycling, the group also confirmed that the RM98.98 million in gross cash proceeds from the Land E disposal, which was completed on Jan 20, 2026, has been fully utilised.
The funds were strategically deployed across land acquisitions (RM55.22 million), core development costs (RM24.18 million), general working capital requirements (RM19.46 million), and transaction expenses (RM0.11 million).
