by HARIZAH KAMEL / pic by TMR FILE PIX
PARAMOUNT Corp Bhd’s earning will be bolstered by the RM460.6 million disposal of its pre-tertiary education business in the first quarter of 2020 while it’s the outlook from its continuing operations for financial year 2020 (FY20) is expected to be lower than FY19.
In a statement recently, group CEO Jeffrey Chew (picture) said although many business operations of the group have gone back to pre-pandemic level during the third quarter (3Q), the resurgence of Covid-19 infections remains a risk.
As of Sept 30, Paramount has 443 acres of undeveloped land in the Klang Valley, Kedah and Penang, and the property developer has completed the purchase of 4.54 acres of land with property in Jalan Ampang Hilir, in the vicinity of the U-Thant enclave in Kuala Lumpur last month.
The proposed development there has a projected gross development value (GDV) of RM863 million and is expected to commence in the third quarter of 2021 (3Q21) with expected completion in five years.
Paramount earning for the third quarter ended Sept 30, 2020 (3Q20) fell by 35% to RM19.8 million from RM30.3 million a year ago for the same period as the financial results of its pre-tertiary and tertiary education businesses were no longer consolidated upon divestment of its controlling stakes in February and September last year, respectively.
Paramount’s revenue from continuing operations was 39% year-on-year higher for the period at RM218.9 million as property sales rose by 82% YoY to RM312 million.
Pretax from continuing operations was 395% YoY higher at RM36.6 million due to higher profit contribution from the property division.
“Our sales in 3Q were 82% higher than that of the corresponding period last year, mainly from project launches this year, which are Sinaran at Utropolis Batu Kawan, Cendana at Greenwoods Salak Perdana and Phase 2 of Sejati Lakeside.
“Despite the Movement Control Order (MCO) disruptions, our 9M20 sales had grown by 5% to RM503 million, thanks to our strong 3Q sales,” said Chew.
He added for the final quarter of this year, Paramount is working hard to capitalise on its strong sales momentum and will intensify promotional activities to boost sales, including launching virtual sales consultation for Sejati Lakeside and Berkeley Uptown projects.
He added the low-interest rate environment and the government-initiated Home Ownership Campaign since June is expected to spur interest in properties.