Paramount’s Q3 earn­ings leap over 7 times on dis­posal gain

The Sun (Malaysia) - - SUNBIZ -

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.

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