Paramount optimistic despite economic uncertainties
-
Loading... - Banyul Nur
- 01 Sep 2022
- 71 Views
- 0 Like
- 0 Comment
Paramount Corp Bhd is optimistic about its prospects amid the current economic uncertainties, with the group expecting to achieve strong growth in its property division.
The group recorded a net profit of RM9.1 million for the second quarter ended June 30, 2022 (2Q22), and hoped its property launches worth RM1.1 billion planned for the second half of 2022 (2H22) will receive stronger demand as home buying sentiment is expected to recover.
The group also believes that its co-working business will grow more in the future.
Group CEO Jeffrey Chew said although the lingering economic uncertainties due to higher interest rates and inflation have dented buyer sentiment in general, new property launches planned for the rest of the year give the group a stronger earnings prospect.
During a briefing on the group’s 1H22 results today, Chew said although the group’s borrowings are not significant, the interest rate will still affect its margins.
“But in terms of margin, we are still doing quite well,” he said.
Chew added that the inflation brings good news for the group, as it means that the group’s properties are now more valuable.
He also touched on labour shortages and material costs, saying that they have caused delays in project completion and delivery.
“It did affect us in terms of delivery, but we have always managed to have a buffer to ensure that we can complete projects on time. On that score, we are just deferring the recognition of revenue and sales because it was delayed,” said Chew.
Measures include value engineering by using alternative materials and redesigning the materials to make them more efficient so that they lower construction costs.
Three projects slated for launch in 3Q22 are the high-rise residences in Shah Alam, the landed residences in Cyberjaya and the transit-oriented mixed development in Petaling Jaya (PJ), all in Selangor. Read More...
