Friday 29 Mar 2024
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KUALA LUMPUR: Paramount Corp Bhd’s net profit grew 18.5% to RM23.19 million or 5.49 sen a share for the first quarter ended March of financial year 2015, mainly driven by higher progressive billings and stronger-than-expected sales from current property developments.

Revenue soared 67% to RM165 million, thanks to higher contributions from both its property and education divisions.

In a filing with Bursa Malaysia yesterday, the group said the property division’s revenue rose 94% to RM128.46 million due to higher progressive billings registered on the Sejati Residences in Cyberjaya, Utropolis in Glenmarie, Shah Alam and Sekitar26 Business in Shah Alam developments, and higher-than-expected sales on these developments and the Bukit Banyan development in Sungai Petani.

Revenue from Paramount’s education division also increased 12% to RM36.1 million due to higher revenue from the primary and secondary schools and the college in Penang.

In a statement yesterday, Paramount group chief executive officer Jeffrey Chew said, “The market is feeling the impact of many different factors, which together have dampened the public’s appetite for consumption. Our strategy this year will be to make the most of the synergistic opportunities offered by our complementary businesses in property and education, while improving operational efficiencies. In property, we see potential for upsides. The government is making home ownership more accessible, and improved connectivity is opening up new areas of growth in the Greater Klang Valley.”

On the education front, Chew said, “Our strategy will be to make good quality education more affordable and more accessible through twinning, franchise and home-grown programmes at the tertiary level, and to offer budget schools in the primary and secondary segments,” he said.


The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Go to www.theedgemarkets.com for more details on a company’s financial dashboard.

 

This article first appeared in The Edge Financial Daily, on May 20, 2015.

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