Paramount more than doubles earnings in Q2 on land disposal

PETALING JAYA: Paramount Corp Bhd's net profit for the second quarter ended June 30, 2018 more than doubled to RM42.30 million from RM18.08 million a year ago mainly attributed to the disposal of 9.4 acres of industrial land in Kota Damansara.

Its revenue stood at RM278.37 million, an increase of 47% compared with RM189.72 million reported in the corresponding quarter last year with higher contribution from the property and education divisions.
For the six months period, its net profit rose 86% to RM49.27 million from RM26.46 million a year ago due to the Kota Damansara land disposal and higher profit from the education division.
Its revenue stood at RM440.61 million, an increase of 31% compared to the RM336.51 million in the corresponding period last year with higher contribution from both the property and education divisions.
The group is targeting to launch in 2018 a mixed development project located in the vicinity of Klang’s main business and commercial area, where the group will also be constructing a new Sri KDU international school. This is in line with the group’s strategy to derive synergy from its strong branding and expertise in its property and education businesses.
In line with the group’s asset light strategy, it will continue to pursue sale and leaseback of education assets and build strategic partnerships to undertake property development projects on joint venture basis if such opportunities arise. In addition, the group seeks to unlock value through the monetisation of land bank and strategic divestments.
Barring any unforeseen circumstances, the group is expected to deliver a better operating performance for the current financial year ending Dec 31, 2018.