Paramount’s Q3 profit almost doubles on disposal gains

PETALING JAYA: Paramount Corp Bhd’s net profit almost doubled to RM30.3 million for the third quarter (Q3) ended Sept 30, 2019 against RM15.62 million in the previous corresponding period, mainly attributable to the gain of RM23.3 million on disposal of the controlling stake in KDU University College Sdn Bhd, KDU University College (PG) Sdn Bhd and KDU College (PJ) Sdn Bhd.

Revenue for the quarter rose slightly by 3.1% to RM217.09 million from RM210.53 million.

Paramount’s nine-month net profit was stable at RM64.93 million against RM64.88 million in the same period last year, while revenue grew 6.9% to RM695.97 million from RM651.15 million.

During the period, it achieved property sales of RM481 million on the back of RM714 million of properties launched.

The property developer told Bursa Malaysia that it foresees the property sector to remain soft in Q4.

“Nevertheless, the lower lending rate following the reduction in the Overnight Policy Rate by Bank Negara Malaysia in May 2019 coupled with the government’s extension of the Home Ownership Campaign to Dec 31, 2019 are expected to improve consumer sentiments for the purchase of properties.

Paramount noted that total unbilled sales of RM957 million as at Sept 30, 2019 is expected to contribute positively to the group’s financial performance in the near future.

“In Q4, Paramount will be launching a new landed development that is located in close proximity to its existing project, Sejati Residences in Cyberjaya to replicate the success of Sejati Residences.”

“As for the northern region, Paramount Property will also be launching the third phase of its serviced apartments in Utropolis Batu Kawan on the back of strong sales achieved thus far.”

As published: