Monday 27 May 2024
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KUALA LUMPUR (Aug 26): Paramount Corp Bhd's net profit jumped 5.6 times to RM9.12 million in the second quarter ended June 30, 2022 (2QFY22) from RM1.62 million in the same quarter a year ago, boosted by a higher revenue.

The board declared a single-tier interim dividend of 2.5 sen per share, to be paid on Sept 22.

Revenue for 2QFY22 grew 58.8% to RM202.38 million from RM127.45 million for 2QFY21. Earnings per share increased to 1.46 sen from 0.26 sen, according to the property developer's filing with Bursa Malaysia.

Paramount's property division recorded a 57% revenue jump to RM197 million from RM125.3 million in 2QFY21 on the back of a larger base of ongoing development projects.

The co-working division's revenue climbed 75% to RM2.1 million from RM1.2 million, mainly due to higher contributions from Tropicana Gardens outlet and Scalable Malaysia, a one-stop end-to-end customised workspace solutions provider.

For the cumulative first half ended June 30, 2022, the group's net profit almost quadrupled to RM14.13 million from RM3.92 million; revenue climbed 32.67% to RM370.48 million from RM279.26 million.

Although building materials' price escalation and shortage of construction workers have been a drag to the property sector's recovery, this is expected to ease when supply normalises in the near term, said Paramount.

"The group will continue to maintain strong financial resilience and optimise its operations for better efficiencies. This includes increasing the usage of Industrialised Building System (IBS) to reduce reliance on labour over the longer term," said Paramount.

It will also continue to explore opportunities to unlock the value of its real estate assets and investments, to enhance return on capital employed while creating long-term shareholder value at the same time.

Paramount shares closed unchanged at 68 sen on Friday (Aug 26), valuing the group at RM419.85 million.

Edited ByTan Choe Choe
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