The assessment follows the divestment of the group’s controlling stakes in its tertiary education business in September 2019 and the pre-tertiary segment in February 2020.

Paramount’s focus is now on its property development and co-working activities.

In a research note, AmBank said the gradual recovery of property demand, coupled with the resumption of construction activities, is expected to drive the group’s net profit by 6% to RM26 million this financial year.

The research house’s net profit projection for Paramount for financial year 2023 is RM39 million, representing 52% growth.

It is estimated to rise 29% to RM50 million the following year.

The earnings growth projections are supported by unbilled sales of RM1.1 billion and estimated sales of RM900 million to RM1 billion, primarily from its The Atera, Sejati Lakeside 2, Utropolis Batu Kawan and Ampang Hilir developments.

Paramount currently has 11 ongoing projects and two future projects. The group has a remaining gross development value (GDV) of RM7.1 billion spread across Kedah, Selangor, Penang, and Kuala Lumpur.

It is in the process of acquiring a 32.7 acre piece of freehold land in Cyberjaya with an estimated GDV of RM370 million. The property developer has also entered into a development rights agreement with Kumpulan Hartanah Selangor to develop a 9.7-acre leasehold land in Section 14 with an estimated GDV of RM1.2 billion.

AmBank expects the land acquisitions to begin contributing to Paramount’s revenue and earnings commencing 2023.

However, the research house cautions that the group’s higher price range for its property products could be impacted by heightened inflation and rising interest rates.

Margins might also be dampened by the increase in construction costs.