Updates

KUALA LUMPUR (May 29, 2019): Paramount Corp Bhd said the group is currently in talks with potential partners for its venture into overseas property markets within the next five years.

Paramount group chief executive officer Jeffrey Chew told reporters after the group’s annual general meeting here today that his team is currently studying the residential property markets in Thailand, Vietnam, Australia and the Philippines, and aims to pursue one or two of these markets under its five-year plan starting 2020.

“We do see the Malaysian property market in the major urban centres getting fairly mature. So rightly said, the next step is to really look at potentially going out of the country… I think we are ready to go.

“We are actually conducting market research on a couple of cities, visiting the sites, learning about the markets, and talking to potential partners as well,” he said, adding that Paramount will likely collaborate with joint venture partners in line with the group’s asset-light business strategy.

Meanwhile, Chew said Paramount is maintaining its RM1 billion sales target set for the financial year ending Dec 31, 2019 (FY19) despite challenges of a softer property market seen, as the group still has some RM800 million worth of launches lined up for the remaining quarters of the year.

This includes Sejati Lakeside in Cyberjaya, Utropolis Batu Kawan in Penang, as well as its Selangorku affordable homes project, he said.

As at end-March, the group has unbilled sales totalling RM907 million.

Shares in Paramount settled unchanged at RM2.11 apiece at noon break today, bringing a market capitalisation of RM914.36 million.

（吉隆坡5月29日讯）百乐园（Paramount Corp Bhd）表示，该集团目前正与潜在合作伙伴，就未来5年内进军海外产业市场进行洽谈。

百乐园集团总执行长周胜忠指出，团队目前正在研究泰国、越南、澳洲和菲律宾的住宅产业市场，并计划从2020年启动的5年计划内，开发其中一两个市场。

他今日出席股东常年大会后向记者说：“大马主要城市中心的产业市场相当成熟。下一步真的探讨走出国门……我认为我们已经准备好了。”

他透露：“实际上，我们正在对几个城市进行市场调查、考察地点、了解市场，并与潜在合作伙伴进行洽谈。”

他并称，百乐园可能会与联营伙伴合作，符合集团轻资产策略。

与此同时，周胜忠指出，尽管产业市场疲软，该集团维持截至12月杪2019财政年10亿令吉的销售目标，因该集团在年内余下季度仍有总值8亿令吉的项目推出。

他说，这包括赛城的Sejati Lakeside、槟城的Utropolis Batu Kawan，以及Selangorku可负担房屋项目。

截至3月底，该集团的未入账销售为9亿700万令吉。

截至3时10分，该股下滑1仙或0.47%，报2.10令吉，共19万5600股易手。

KUALA LUMPUR (May 24, 2019): Paramount Corp Bhd’s first quarter net profit dropped 11.46% to RM6.17 million from RM6.96 million a year earlier.

The group said that while its property division reported higher profit, its education segment saw a decrease in earnings.

Quarterly revenue rose 18% to RM191.44 million from  RM162.25 million previously, thanks to higher contribution from the property division.

The property division saw its revenue increasing 34% to RM122.1 million from RM91.3 million previously.

The segment’s profit before tax increased 68% to RM14.6 million from RM8.7 million a year ago.

The group said the higher earnings were due to the completion of the Utropolis Glenmarie development, as well as contributions from the new phases launched, namely Greenwoods, Salak Tinggi, and Utropolis Batu Kawan, Penang.

Meanwhile, Paramount’s education segment recorded lower revenue of RM69.3 million compared with RM70.8 million a year earlier.

The segment’s profit before tax for the quarter stood at RM9.6 million down from RM12.7 million in the corresponding quarter last year.

This was due to lower contributions from Sri KDU Sdn Bhd, R.E.A.L Education Group and KDU University (PG) Sdn Bhd. However, these lower contributions were cushioned by KDU University College Sdn Bhd’s improved performances arising from higher student enrolment.

In a separate statement, Paramount Group chief executive officer Jeffrey Chew said that while the property market is expected to remain soft, Bank Negara Malaysia’s 25 basis point cut in its overnight policy rate would result in lower loan instalments, boding well for property consumption.

“We look forward to launching seven developments including new phases of existing projects this year, while adopting a more cautious approach in response to market conditions,” he said.

Construction has commenced on the new 1,500-student capacity Sri KDU International School in Berkeley Uptown Klang. When completed, the school is expected to increase Sri KDU’s total capacity by about 50%. The first intake in Berkeley Uptown will be in January 2021, said Chew.

He noted that the education space remains challenging and that price pressure present in the segment will continue.

Its strategic partnership with the University of Wollongong is expected to be completed in the third quarter, and the asset securitisation proposal involving the sale of university campuses and leaseback by tertiary institutions is also expected to be completed by then, and result in recurring rental income for the group.

Paramount’s share price closed 0.48% or a sen lower at RM2.08 yesterday, giving the group a market capitalisation of RM905.69 million.