Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on November 21, 2019

KUALA LUMPUR: Paramount Corp Bhd’s net profit doubled to RM30.3 million for the third quarter ended Sept 30, 2019 (3QFY19) from RM15.62 million for the year-ago quarter, after recognising a RM23.3 million disposal gain.

In a Bursa Malaysia filing yesterday, Paramount said the gain was from the sale of its controlling stake in its tertiary education business — KDU University College Sdn Bhd, KDU College (PG) Sdn Bhd, and KDU College (PJ) Sdn Bhd — which was completed on Sept 3.

Quarterly revenue rose 3% year-on-year to RM217.09 million from RM210.53 million, with a higher contribution from properties.

The group recorded higher property revenues from its Greenwoods, Utropolis Glenmarie, and Berkeley Uptown developments. But, the segment’s profit before tax decreased 49%, dragged by lower contributions from Atwater and Utropolis Glenmarie, and higher losses from Utropolis Marketplace.

As for its education division that recorded a 9% revenue contraction for the quarter, following the completion of the KDU disposal, resulting in the financial performance of these companies to be equity accounted as associated companies. However, segmental profit rose as costs associated with campus properties were placed with the property investment segment.

For the cumulative nine months, Paramount’s net profit stood at RM64.93 million, compared with RM64.88 million in the corresponding period a year ago, while revenue grew 7% to RM695.97 million from RM651.15 million.

Paramount group chief executive officer Jeffrey Chew said the group in the first nine months of 2019 achieved property sales of RM481 million on RM714 million worth of properties launched. “The group’s total unbilled sales of RM957 million as at Sept 30, 2019 are expected to contribute positively to our financial performance in the foreseeable future,” he said.

Paramount shares closed unchanged at RM1.28 yesterday, bringing it a market capitalisation of RM776.55 million.

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