KUALA LUMPUR (Aug 27): Paramount Corp Bhd’s property division achieved a profit before tax (PBT) of RM20.6 million in 2Q2021 against a loss before tax (LBT) of RM4.5 million a year ago.

The group said in a statement that this was on the back of RM125.2 million in revenue which was 101% higher than a year ago.

The top three revenue contributors were Bukit Banyan in Kedah, ATWATER in Selangor and Utropolis Batu Kawan in Penang.

The higher 2Q2021 revenue was mainly attributed to the higher level of construction progress recognised, coupled with higher sales achieved, given the low base last year due to the first movement control order (MCO 1.0).

Although the group’s construction sites were closed from June 1, 2021 in compliance with the full movement control order (FMCO), most resumed operations within the same month after relevant approvals were obtained and compliance requirements were met.

For 6M2021, the property division recorded a revenue of RM274.8 million (6M2020: RM182.0 million) and a PBT of RM35.7 million (6M2020: RM1.2 million). The improved performance was due to less severe disruptions to the group’s operations as compared to last year.

The group's also saw property sales for 6M2021 grow by 62% to RM309 million (6M2020: RM191 million) on the back of steady demand from the sale of existing as well as new products from an existing project.

“The property market will be weighed down by continued economic uncertainties caused by the prolonged pandemic situation which could result in cautious household spending, reduced business expenditure and weakened employment market,” said Paramount Group CEO Jeffrey Chew.

“However, as lockdown restrictions ease, we hope to sustain the strong sales momentum with speedier sales conversion and project approvals. The low interest rate environment and the stamp duty exemption under the home ownership campaign remain crucial to incentivise property purchases,” he added.

“The new projects lined up for the second half of this year are The Atrium, a high-rise residential development at the prestigious U-Thant enclave of Kuala Lumpur and Arinna Kemuning Utama, a lowdensity smart home project located in Shah Alam,” said Chew.

He added that measures are also underway for the group to meet the relevant standard operating procedures such as vaccination of workers to allow construction activities to be carried out at a higher workforce capacity.

Overall, the group expects the business environment to remain challenging for the rest of 2021 and as such, the Board has exercised prudence not to declare any dividend for this quarter.

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