Exchange-listed state-owned utility Phnom Penh Water Supply Authority (PWSA) posted a sharp year-on-year drop in total revenue, operating profit and net profit last year.
In fiscal year 2019, revenue dipped 18.33 per cent to 216,496,816 riel ($53,250) from 265,093,293 riel in 2018, PWSA said in a financial report filed to the Cambodia Securities Exchange (CSX) on Monday.
Operating profit fell 45.22 per cent to 51,974,444 riel from 94,871,231, while net profit sank 54.77 per cent to 33,291,913 riel from 73,607,168.
CSX vice-chairman Ha Jong-weon said the drop in 2019 net profit was not due to a sharp dip in sales, but to a decrease in other income.
Ha said: “The current share price of PWSA is already undervalued. Therefore, I do not expect to see much more of a decline, and the price will return to its intrinsic value, [increasing] along the development of the stock market and economy.
“Many investors found PWSA to be a very attractive stock, since it is state-owned with a very stable revenue growth.
“People will find this stock even more attractive during the economic crisis, because water is a basic need, and people will not use less water even if their revenues decrease. However, the revenue from PWSA is mainly from commercial use.”
He said PWSA charges households very little, and even less to those who use only a little water per month. “This is because of the government’s poverty reduction policy.
“As Phnom Penh continues to expand, so too will PWSA’s investment. If it is for commercial use, then it is good news for investors. If it is for small household use, it might not be,” he said.
On April 18, 2012, PWSA became the first company to list on the CSX.