Paramount to double property launches in 2016 to RM770m

KUALA LUMPUR (Feb 25): Paramount Corp Bhd is doubling its property launches this year to RM770 million, from RM313 million in 2015, and aiming to have RM480 million new sales for the financial year ending Dec 31, 2016 (FY16).

Out of the RM770 million launches, Paramount group chief executive officer Jeffrey Chew Sun Teong said that 30% will be commercial units, 34% landed residential, and 36% integrated high rise condominium.

"While other property developers are facing sales contraction, our sales are still growing. One of the reason is that we are also a smaller player at the moment, so we can still reach a certain size, before getting affected by slower economy," he told pressmen in a media briefing today.

Chew said Paramount's confidence on having more launches in 2016 was premised on the group's product mix and the synergy from its education arm.

"Our products range from RM300,000 to RM3 million, having a good geographical spread in Klang Valley, Penang, and Sungai Petani," he elaborated.

On the group's education division, Chew said Paramount is targeting positive earnings before interest, tax, depreciation, and amortisation (EBITDA) in FY16, and turning the bottom line around by 2018.

"We are still making losses because of the depreciation charge for our new campus, but we are also trying to achieve 20% growth in student numbers for the next three years, so by 2018, we think the education business will start contributing to the group," he said.

As at market break, Paramount shares were trading unchanged at RM1.55, giving it a market capitalisation of RM654.51 million. — theedgemarkets.com

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