Higher property sales boost Paramount’s Q2 results

PETALING JAYA: Paramount Corp Bhd’s net profit for the second quarter ended June 30, 2016 (2Q16) jumped 70% to RM23.91 million from RM14.06 million a year ago thanks to improved sales in property division.

The group recorded a higher revenue of RM145.31 million in Q2’16, an increase of 26% compared with RM115.26 million recorded in Q2’15, due to higher contribution from the property division.

“Prospects for the property division are improving, especially in the area of commercial properties, where astute investors are looking to make long-term strategic investments,” said Paramount.

Planned launches for the group’s commercial developments are expected to meet with favourable demand. These will be complemented by the launch of several residential developments to maintain the group’s business strategy of having an array of products at different priced points and locations.

The group is also finalising plans for the rollout of its new development in Batu Kawan, Penang, which remains a property hotspot.

Unbilled sales as at June 30, 2016 stands at RM355 million, on the back of sales of 156 units in the first six months, with a sales value of RM129 million, as well as progressive billings from on-going developments.

It said the education division will continue to face challenges, as the business continues to be intensely competitive, especially in the tertiary segment.

Barring any unforeseen circumstances, the group is expected to deliver a comparable set of results for 2016.

It has declared an interim single tier dividend of 2.5 sen per share in respect of the financial year ending Dec 31, 2016, which will be paid on Sept 28, 2016 to shareholders.

For the six months period, its net profit fell 9.8% to RM33.60 million from RM37.25 million a year ago, attributable to a lower contribution from the property division. Group revenue for the period also decreased by 8% to RM258.64 million from RM280.26 million in the previous corresponding period.