PETALING JAYA: Property and education company Paramount Corp Bhd posted an almost eight-fold increase in net profit to RM85.76mil for the third quarter ended Sept 30, 2017compared to the same quarter a year ago, thanks to gain on disposal of asset.
The company said in an announcement to Bursa Malaysia that the completion of the sale and leaseback agreement with Alpha REIT to dispose of the Sri KDU campus under its asset-light strategy generated a gain on disposal of RM77.8mil.
During the quarter in review, Paramount’s earnings per share (EPS) increased to 20.21 sen from 2.64 sen in the previous corresponding period.
The company’s revenue rose 42% to RM191.1mil on higher contribution from both the property and education divisions.
Paramount’s shares fell two sen to close at RM1.73 yesterday.
For the nine-month period, Paramount’s net profit more than doubled to RM108.72mil while EPS increased to 25.65 sen from 10.59 sen previously.
Nine-month revenue rose 32% to RM518.59mil on higher contribution from both the property and education divisions.
Paramount expects operating earnings to remain strong until the end of the year.
Paramount’s property division recorded sales of RM213mil for the third quarter mainly from the encouraging take-up rate of new launches, namely Urbano at Glenmarie and Sekitar Business Park at Shah Alam, while the nine-month sales of RM633mil surpassed the 2016 full-year sales of RM402mil. Unbilled sales as at the end of third quarter increased to RM588mil from RM534mil as at the end of the second quarter.
It expected the property division’s performance to be supported by the rolling out of another two innovative concept developments in near future, that is, Section 13 in Petaling Jaya and Greenwoods at Salak Perdana.
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