Paramount’s Q3 earnings leap over 7 times on disposal gain
PETALING JAYA: Paramount Corp Bhd’s earnings jumped more than seven fold to RM85.76 million for the third quarter (Q3) ended Sept 30, 2017 against RM11.16 million in the previous corresponding period, mainly underpinned by a gain of RM77.8 million recognised on the disposal of the Sri KDU campus. Revenue increased 41.8% from RM134.78 million to RM191.1 million, thanks to higher contribution from both the property and education divisions.
The property developer told Bursa Malaysia that it achieved sales of RM213 million for Q3, mainly from the encouraging take-up rate of new launches, namely Urbano in Glenmarie and Sekitar Business Park in Shah Alam.
Its nine-month sales of RM633 million also surpassed the 2016 full-year sales of RM402 million. Unbilled sales as at the end of Q3 stood at RM588 million compared with RM534 million in Q2.
Paramount expects its property division to benefit from the positive market sentiment by promoting and developing properties that are affordably priced and innovatively conceptualised.
However, on the education front, it will continue to face intense competition in a highly price-sensitive environment.
“Tertiary education institutions have gone into a price war in an attempt to hold their respective market positions and compete for new students.”
Paramount’s nine-month net profit more than doubled from RM44.76 million to RM108.72 million on the back of a 31.8% increase in revenue from RM393.41 million to RM518.59 million.
Its shares close 2 sen, or 1.1%, lower at RM1.73 yesterday, with some 5,000 shares changing hands.