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Paramount’s 3Q net profit leaps by 100 times on sale of DJ Campus and strong property division improvement

2022-11-25T11:46:03+08:00November 25th, 2022|0 Comments

KUALA LUMPUR (Nov 25): Paramount Corporation Bhd’s net profit jumped by 100 times to RM27.17 million in the third quarter ended Sept 30, 2022 (3QFY22) from a low base of RM267,000 posted a year ago.

The strong net profit was largely attributed to the improvement of the property division and boosted by a non-recurring gain of RM53.7 million from the sale of the tertiary education campus in Damansara Jaya (DJ Campus).

The group also divested the remaining 20% equity in the pre-tertiary education business, the group said in a filing with Bursa Malaysia on Friday.

Quarterly revenue leapt to RM231.74 million from RM84.76 million a year ago, on stronger property division performance.

Paramount’s property division recorded revenue of RM225.1 million, which was 171% higher than that of the corresponding quarter last year of RM83.1 million given the lower levels of construction activities and property sales as a result of containment measures taken to curb the spread of the Covid-19 virus in 2021.

Meanwhile, its coworking division recorded RM2.3 million revenue for 3Q2022, which was more than double from the RM1.1 million recorded in the corresponding quarter last year. The jump was attributed to the higher contributions from Tropicana Gardens outlet and Scalable Malaysia, a one-stop end-to-end customised-workspace solutions provider.

For the cumulative nine months, Paramount’s net profit stood at RM41.31 million against RM4.18 million in the same period last year.

Revenue for 9MFY22 stood at RM602.22 million compared with RM364.16 million last year.

In a separate statement, Paramount Group CEO Jeffrey Chew said the group remains in a resilient position in the fourth quarter to deliver a year of solid growth focusing largely on enhancing the group’s productivity amid an inflationary environment.

“Sales momentum in the third quarter remained strong. For the first nine months of 2022, sales of RM691 million was recorded, an increase of 95% (9M2021: RM354 million) while unbilled sales of RM1.3 billion was a new milestone achieved,” he said.

Shares of Paramount closed lower by 2.05% or 1.5 sen to 71 sen giving the company a market capitalization of RM441.63 million.

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