Paramount eyes double-digit earnings growth in next five years

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PETALING JAYA (Mar 19): Property developer and education group Paramount Corp Bhd is expecting a double-digit growth in its topline and bottomline in the next five years, supported by strong property projects in its pipeline with a gross development value (GDV) of RM9.1 billion, and  growing recurring income from its education business.

At a media briefing today, group chief executive officer Jeffrey Chew said the RM9.1 billion worth of property projects will be delivered over the next 10 years.

"Over the last 10 years our profit after tax CAGR is about 10%, we hope to achieve double-digit growth in the next five years, hopefully a high-end double-digit growth."

Its projects will maintain focus on landed townships and most of its landbank located in Selangor and Penang, he said.

Additionally, he said Paramount has been consistent in paying dividends to reward its shareholders and the group will continue to maintain its dividend payout of between 40% and 50% of its net profit.

Currently, 30% of Paramount's revenue comes from its education business, with the rest from property development.

Jeffrey said the group plans to maintain the current ratio between the two core businesses in the future.

Paramount’s (fundamental: 1.6; valuation: 3.0) education portfolio includes Sri KDU International School, KDU College, and KDU University.

The group reported a net profit of RM64.1 milion in financial year ended Dec 31, 2014(FY14), with a revenue of RM510 million. It had also proposed a dividend of 7.5 sen per share in FY14.

As at 12.16pm, Paramount was unchanged at RM1.48, giving it a market capitalisation of RM624.95 million.