Paramount Q2 net profit at RM28.46 mln, records unbilled sales of RM978 mln

KUALA LUMPUR, Aug 22 — Paramount Corporation Bhd, which is involved in property development and education services, saw its net profit slip by 33 per cent to RM28.46 million in the second quarter ended June 30, 2019 (Q2) compared with RM42.30 million in the same quarter last year.

It said in the absence of gain from the disposal of 3.8 hectares (ha) of industrial land in Kota Damansara which contributed RM43.2 million in Q2 last year, the net profit in Q2 2019 would have shown an improvement.

Revenue for the quarter edged up three per cent to RM287.43 million from RM278.37 million, the company said in a filing to Bursa Malaysia today.

Net profit for the cumulative six months was also lower at RM34.63 million as compared with RM49.26 million before, while revenue stood at RM478.88 million versus RM440.61 million previously.

The group achieved property sales of RM310 million during the first six months of the year and registered a record high of RM978 million in unbilled sales as at June 30, 2019.

“This is expected to contribute positively to the group’s financial performance in the future,” it said.

Paramount group chief executive officer Jeffrey Chew said, “We foresee the property sector will remain soft. Nevertheless, the lower lending rate following the reduction in the overnight policy rate by Bank Negara Malaysia in May 2019 and the government’s extension of the Home Ownership Campaign are expected to improve consumer sentiment for property purchase.”

Paramount Property will be launching six projects in the second half of 2019 including new phases of existing projects.

For the central region, it will be expanding the footprint to Klang via Berkeley Uptown, a 13.5ha integrated property-education development project, which will be anchored by a new Sri KDU International School.

It will also be launching a new landed development in Cyberjaya called Sejati Lakeside, located in close proximity to its multiple award-winning Sejati Residences.

“We have launched Phase 1 of Kemuning Idaman which spans over seven acres and comprise two towers with 650 affordable homes at our existing township in Kemuning Utama, Shah Alam. This is in support of the Selangor government’s Rumah Selangorku initiative that aims to bridge the affordability gap and help fellow Malaysians own a home.

“Up north, we will be launching the third phase of Utropolis Batu Kawan apartments on the back of strong sales achieved to date. The opening of KDU Penang University College at Utropolis Batu Kawan in September 2019 is expected to be a game-changer with it being the first university metropolis in Penang,” said Chew.

“Barring unforeseen circumstances, the group is expected to deliver better financial performance for the financial year ending Dec 31, 2019,” he added.

As published: