Paramount Corp’s net profit rises to RM104.1m in FY19

by BERNAMA/ pic credit:

PARAMOUNT Corp Bhd’s net profit rose to RM104.05 million in the financial year ended Dec 31, 2019 (FY19), from RM91.81 million previously.

In an exchange filing yesterday, the education cum property company said the higher earnings were mainly due to the gain of RM25.4 million recognised for the disposal of its stakes in UOW Malaysia KDU University College Sdn Bhd, UOW Malaysia KDU Penang University College Sdn Bhd and UOW Malaysia KDU College Sdn Bhd to UOWM Sdn Bhd on Sept 3, 2019 (KDU disposal).

Revenue also improved to RM705.97 million from RM632.49 million previously.

On the property division, the company said revenue increased to RM700.3 million from RM631.2 million in FY18.

“The higher revenue was contributed mainly by Utropolis Glenmarie, Shah Alam development; Utropolis Batu Kawan, Penang development; and Greenwoods, Salak Tinggi development,” it said.

While for its education division, Paramount Corp said revenue, however, was lower at RM249.9 million from RM275.2 million in FY18, mainly due to the completion of KDU disposal.

For 2020, the group foresees the property sector to remain soft.

“Nevertheless, the lower lending rate following the reduction in the Overnight Policy Rate by Bank Negara Malaysia in January 2020 and the 2020 economic stimulus package are expected to improve consumer sentiment for the purchase of properties,” it said.

On prospects for the education segment, the company said it would ramp up land-banking activities focusing on parcels of land suitable for landed or integrated development in the next five years.

“And where there is synergy and greater efficiency, the group will participate in joint ventures with landowners.

“In addition, the group will explore new business opportunities in property-related businesses to future proof its business and for sustainability of its earnings in the long run,” it added.

Paramount also declared a special interim dividend of 29 sen per share payable on April 23, 2020.