JOHOR-CENTRIC property developer Paragon Globe Bhd is projected to see its core net profit jump nearly five-fold to RM98 mil in its financial year ending March 31, 2027 (FY3/2027).
This is driven by a strong of Johor data centre land disposals, a development pipeline exceeding RM5 bil in gross development value (GDV) and a growing base of recurring rental assets.
In a company note entitled “Monetising Landbank, Building Future Earnings”, Berjaya Research ascribed a fair value of RM1.26 to the Johor-focused developer – a 72.6% upside from the group’s reference share price of 73 sen – while leaving the stock “not rated” without a formal buy or sell call.
The projected FY3/2027 earnings surge marks a sharp step-up from the group’s FY3/2026’s core net profit base of RM19.7 mil (which excludes a substantial one-off, non-cash fair-value gain on investment properties).
Momentum is expected to remain steady over the medium term with core earnings forecast to reach RM102.4 mil in FY3/2028 and RM107.4 mil in FY3/2029.
At the heart of Paragon Globe’s near-term earnings visibility is its active monetisation of industrial land in Johor to global data centre operators, thus allowing the group to unlock landbank value and strengthen its balance sheet.
Firm recurring income prospect
On Oct 16, the group completed the RM238.32 mil disposal of 47.86 acres in Plentong, Johor, to Bridge Data Centres Malaysia IV Sdn Bhd.
Just 11 days later, on Oct 27, shareholders approved the proposed RM398.11 mil sale of land in Tanjung Kupang, Iskandar Puteri to DayOne Data Centers Malaysia I Sdn Bhd.
Targeted for completion in the second half of 2027, the DayOne transaction alone is estimated to yield a net pro forma gain of RM187.43 million.
Beyond outright land sales, Paragon Globe is building out a development pipeline worth over RM5 bil in estimated GDV across the residential, commercial and industrial segments.
Key upcoming and on-going projects include Kensington Parkview, Calia Residences, The Iconic and the proposed Kulai-Sedenak industrial park.
To smooth out the inherently lumpy nature of property development billings and land disposals, the group has also been expanding its recurring-income portfolio.
As of end-June 2026, Paragon Globe held approximately RM388.7 mil in investment properties comprising a purpose-built healthcare facility in Sepang locked into a 15-year lease alongside worker dormitories and industrial rental assets.
Berjaya Research arrived at its RM1.26 valuation using a sum-of-the-parts (SOTP) methodology by applying a 20% discount to the property development division’s estimated revalued net asset value (RNAV) and a discounted cash flow (DCF) model for its rental and investment assets.
Still, the brokerage cautioned that realising this valuation upside will hinge on timely execution by pointing to potential headwinds from rising construction material costs, regulatory or completion delays in land transactions as well as the pace of future project launches and sales take-up.
At 4.10pm, Paragon Globe was unchanged at 73 sen with 5,000 shares traded, thus valuing the company at RM545 mil. – Niv 6, 2026
