As reported by Azanis Shahila Aman
KUALA LUMPUR: Paramount Corporation Bhd’s net profit rose 461 per cent to RM9.1 million in the second quarter (Q2) ended June 30, 2022, from RM1.6 million a year ago.
The company’s revenue also increased 59 per cent to RM202.4 million in Q2 2022 from RM127.4 million last year.
For Q2 2022, the property division recorded a revenue of RM197.0 million, 57 per cent higher than the corresponding quarter last year of RM125.3 million.
Paramount said this is the back of a larger base of ongoing development projects. However, the work progress of several projects in Q2 2022 has been disrupted by the scarcity of construction workers.
“The top three revenue contributors in Q2 2022 were Utropolis Batu Kawan development in Penang, Sejati Lakeside development in Selangor and Bukit Banyan development in Kedah,” it said.
For the six months ended June 30, 2022, the company’s net profit rose more than double to RM14.1 million from RM3.9 million last year, while revenue rose 33 per cent to RM370.5 million from RM279.3 million previously.
Paramount has declared a single-tier interim dividend of 2.50 sen per share for the financial year ending December 31, 2022 (FY22), which will be paid on September 22, 2022.
Paramount group chief executive officer Jeffrey Chew said the company was optimistic that its financial performance for Q2 2022 would surpass that of the first half.
Chew said that with the encouraging sales momentum achieved in Q2 2022, the company looks forward to launching five projects with an estimated gross development value of RM1.1 billion in the second half of this year.
Meanwhile, he said Paramount’s coworking and workspace solutions businesses are also well positioned to capitalise on the opportunities arising from the spur of economic activities and adopt a hybrid office set-up.
“The company will maintain strong financial resilience and optimise its operations for better efficiencies.
“This includes increasing the use of industrialised building systems (IBS) to reduce reliance on labour over the longer term.
“Overall, the company will continue to explore opportunities to unlock the value of its real estate assets and investments to enhance return on capital employed while creating long-term shareholder value,” he added.
As published: New Straits Times