KUALA LUMPUR (May 23): Paramount Corp Bhd achieved sales of RM227 million in the first quarter ended March 31, 2018 (1QFY18), but reported a slight drop in first-quarter net profit to RM6.96 million from RM6.98 million a year ago, on lower progressive billings recorded from the property division.

The property developer is targeting to achieve property sales of RM1 billion for the current financial year ending Dec 31, 2018 (FY18), backed by new launches of properties worth RM1.2 billion.

Paramount's unbilled sales stood at RM736 million as at March 31, 2018, which is expected to contribute positively to the group's financial performance in the near future.

As at end-March, the group has a total undeveloped land bank of 731.4 acres across the Klang Valley, Kedah and Penang.

Meanwhile, Paramount recorded lower earnings per share of 1.64 sen for 1QFY18 compared with 1.65 sen for 1QFY17.

Quarterly revenue, however, was up 12.6% to RM162.25 million from RM144.1 million in 1QFY17, on higher contribution from the education division due to consolidation of R.E.A.L. Education Group of RM27 million from April last year, coupled with the higher student enrolment at KDU University College in Glenmarie and Penang.

In a filing with Bursa Malaysia today, Paramount said pre-tax profit for the property division dropped 34% to RM8.7 million in 1QFY18 from RM13.1 million in 1QFY17, mainly due to lower construction activities coupled with the completion of certain phases within the high-end Sejati Residences in Cyberjaya and Utropolis Glenmarie's serviced apartments in Shah Alam, Selangor last year.

Encouraged by the launch of the first phase of Keranji — a component of the Greenwoods township development in Salak Perdana, Sepang — Paramount is preparing to launch the second phase this year to meet the strong demand for affordable properties.

The group is also targeting to launch a mixed development project this year located in the vicinity of Klang's main business and commercial area for which 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," said Paramount.

In respect of the education segment, Paramount said competition will remain intense amid a highly price sensitive environment, with slow market growth and high market penetration for the tertiary segment.

"The K-12 segment is expected to see continued mushrooming of new entrants into the market.

"The group will remain focused on delivering quality education and will leverage on proven, long standing track record of the KDU brand to grow the student population," it added.

In line with the group's asset light strategy, it will continue to pursue sale and leaseback of assets and build strategic partnerships to undertake development projects on joint venture basis if such opportunities arise.

"Barring any unforeseen circumstances, the group is expected to deliver a better operating performance for FY18," said Paramount.

Shares in Paramount closed one sen or 0.5% lower at RM1.99 today, bringing a market capitalisation of RM852.26 million.