Paramount bids for RM2b property projects, targets RM600m sales

SHAH ALAM (June 3): Paramount Corp Bhd ( Financial Dashboard) aims to achieve its RM600 million property sales target within the next three years, capitalising on existing projects and RM2 billion worth of bids, its chief said.

Group chief executive officer Jeffrey Chew Sun Teong said Paramount (fundamental: 1.4; valuation: 2.6) had six on-going projects. Chew said the developer had a tender book of some RM2 billion, which includes a bid under the Employees Provident Fund’s Kwasa Damansara project in Sungai Buloh, Selangor.

"We hope to achieve RM600 million of property sales within the next two to three years. This will be achieved as four of Paramount’s property projects will come on board in the coming years," Chew told reporters after Paramount’s annual general meeting here today.

According to notes accompanying Paramount’s latest financials, the company had achieved new property sales of RM157 million in the first quarter ended March 31, 2015 (1QFY15). The company said the new sales would boost "lock-in sales brought forward".

Today, Chew said Paramount expected to register in FY15 some RM400 million of unbilled property sales from FY14.

"We are aiming for double-digit growth for both our property and education divisions," Chew said.

Paramount’s education arm includes KDU University College and Sekolah Sri KDU.

At 12:30pm, Paramount shares settled flat at RM1.85 for a market value of RM781.2 million. The stock saw 703,400 shares done.

Paramount shares had risen 20% this year, outperforming the FBM KLCI’s 1% decline. Paramount’s shares price compares with its latest net assets per share of RM2.07.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)