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PR Newswire
11-06-2023, 10:38 AM
Paramon used to have 2 arms - property development and education. In the early days, education was not really contributing much but the company managed to improve its performance as time went by.
However, the company had over the past few years divested its education arm to focus its operations on property development. Was this a mistake?
Over the past 2 years, its PAT decreased by 61 % CAGR whereas the mean PAT for the Bursa property sector grew at 41 % CAGR as per my analysis in Will the Malaysian Property industry turn around by 2024?
Does this mean that without the education arm, the company will not be able to do as well as in the past?
The property sector is cyclical and are affected by different factors than the education arm. I would have thought that the having a non-property development arm would help to reduce the impact of the property cycle.
Of course, I am just looking at the past 2 years of results. To really see what is happening you will have to dig deeper but this is a story for another day.
However, the company had over the past few years divested its education arm to focus its operations on property development. Was this a mistake?
Over the past 2 years, its PAT decreased by 61 % CAGR whereas the mean PAT for the Bursa property sector grew at 41 % CAGR as per my analysis in Will the Malaysian Property industry turn around by 2024?
Does this mean that without the education arm, the company will not be able to do as well as in the past?
The property sector is cyclical and are affected by different factors than the education arm. I would have thought that the having a non-property development arm would help to reduce the impact of the property cycle.
Of course, I am just looking at the past 2 years of results. To really see what is happening you will have to dig deeper but this is a story for another day.