PARAMOUNT CORPORATION BHD (-ve)
PARAMOUNT (Fundamental: 1.4/3, Valuation: 2.6/3) has surged 8.8% to a 3-year high of RM1.85 since posting strong 1Q15 results on May 19. For 1Q15, net profit rose 18.5% y-o-y to RM23.2 million, boosted by higher progressive billings.
The company has ongoing property development projects in the Klang Valley and Sungai Petani with a total Gross Development Value (GDV) of RM2.4 billion. It also provides primary, secondary and tertiary education services via KDU Education Group.
Paramount is targeting to complete its RM227.4 million acquisition of 237.3 acres of land in Salak Tinggi by July 2015, increasing its total GDV for ongoing and future projects to RM9.1 billion.
The stock trades at a trailing 12-month P/E ratio of 11.8 times and 0.8 times book value. A final dividend of 5 sen will go “ex” on June 8, pending shareholder approval. Dividends for FY2014 totalled 7.5 sen, giving a yield of 4.1%.
PARAMON (1724) - Stock With Momentum: Paramount Corporation
http://www.theedgemarkets.com
