Two Cambodia Securities Exchange- (CSX-) listed firms – Grand Twins International (GTI) and Sihanoukville Autonomous Port (PAS) – reported a strong business performance with high revenue in the third quarter of this year.
PAS reported $22.889 million in total sales revenue during the period, a 30 per cent year-on-year increase from $17.689 million. Net profit increased 20 per cent year-on-year to $6 million from $5 million while operating profit soared 105 per cent year-on-year.
GTI reported a 35 per cent year-on-year increase in total revenue to more than $46.65 million during the period. However, net profit dropped sharply by around 80 per cent to a mere $177,100.
CSX Market Operations Department acting director Kim Sophanita said: “[PAS’] remarkable performance illustrates its strong potential for growth.
“However, GTI should find a good strategy to reduce costs and/or increase revenue in the following quarters to improve its financial status and maintain investor confidence.
“If Cambodia’s economic growth continues to grow, both stocks will be more likely to rise because revenue would increase,” she said.
Prom Visoth, president and CEO of brokerage firm Acleda Securities Plc, said growth in the two firms’ revenue will increase their profit margins and basic earnings per share, which are good signs for investors as well as the market as a whole.
“These performance measures will attract more people to invest in their shares, boosting their share prices and the bourse’s transaction volume and value. The more earnings, the more participation on the bourse,” he said.
Sophanita said records in trading activity and the exchange’s index were broken this year, with the index reaching a high of 869.69 points on October 9.
Average daily trading value as of the third quarter of this year is approximately $200,000, compared to 2018’s figure of $26,000 – seven times smaller, she said.
Four more companies plan to list sometime this year or early next year, she said.
“We are currently working with two companies preparing to list on the Equity Main Board, two companies preparing to list on the Equity Growth Board and two more to list a bond.”
Over the more than seven years of the CSX’s operation, five companies have listed on the Equity Main Board and three financial institutions and banks have issued bonds. Listed firms have raised a combined $120 million, data from the CSX shows.
The CSX index inched up 0.05 per cent to 778.69 points at Monday’s close.