Logo of Phnom Penh Post newspaper Phnom Penh Post - PPSP reports decline in revenue, net profit

PPSP reports decline in revenue, net profit

A monitor displays the Cambodian stock market index next to the reception of the CSX earlier this month in the Kingdom’s capital.
A monitor displays the Cambodian stock market index next to the reception of the CSX earlier this month in the Kingdom’s capital. Heng Chivoan

PPSP reports decline in revenue, net profit

Industrial park operator Phnom Penh SEZ, which became the fourth company on Cambodia’s stock exchange when it listed in May, released its audited 2015 annual report and 2016 half-year financials yesterday, reporting declines in revenue and net profit over the past 18 months on slower land sales.

The company’s much-delayed 2015 annual report showed revenue fell by nearly 30 per cent to $16.4 million in 2015, compared to $23.3 million a year earlier. The bulk of this loss was attributable to a decline in sales of industrial plots in its 357-hectare special economic zone (SEZ) on the outskirts of the capital. In 2014, the company sold 37 hectares valued at $21 million, while last year it sold just 28 hectares for $13.6 million.

Meanwhile, the condensed unaudited statement for the first half of this year showed revenue at $4.5 million after plunging over 50 per cent from the same period in 2015. Land sales almost dried up, with revenue plummeting from $7.6 million in the first half of 2015 to just $562,000 during the first six months of 2016. Just 4 hectares were sold during this time.

Phnom Penh SEZ, which trades on the Cambodian Securities Exchange (CSX) as PPSP, raised $8.2 million during its initial public offering in May. The company has said it will use the funds to expand its SEZ in the capital, develop a new industrial park on the Thai border near Poipet, and pay off bank debts.

The industrial park operator’s total sellable land bank increased to 149 hectares as of June 30. The company also generates revenue from the lease of land and provision of services to industrial park tenants.

The company’s diluted earnings per share declined from $0.071 in the middle of 2015, to $0.005 as of June 30 this year. Ahead of its listing, Phnom Penh SEZ promised to distribute at least a fifth of its net profit to its shareholders as an annual dividend.

Fong Nee Wai, the company’s chief financial officer, stressed that while the half-year 2016 financials show a decline in profit, this should not be a reason for investors to panic.

“The company is still making a profit and unless we start losing money, investors shouldn’t be concerned,” he said. “We are still talking to clients that want to set up in the special economic zone and hopefully more will come by the end of this year.”

Nee Wai denied the listed company was late in publicly disclosing its financial statements, insisting that Phnom Penh SEZ had worked closely with the capital market regulator, following all required regulations and timelines.

Svay Hay, CEO of brokerage firm Acleda Securities, said income-approach investors could react to the decline in earnings, causing the share price of PPSP to drop. However, the lower share price could end up attracting more long-term investors.

“Value investors shall invest more while the price fluctuates at a lower trend after movement,” he said.

PPSP closed trading yesterday before the issuance of the financial statements at 2,640 riel, or $0.64, per share.

MOST VIEWED

  • 12th Cambodia int’l film festival to see return of Hollywood star

    Phnom Penh is set to come alive with the magic of cinema as the highly anticipated 12th Cambodia International Film Festival (CIFF) takes centre stage. Boasting an impressive line-up of 188 films from 23 countries, including captivating shorts, feature films, documentaries and animation, the festival promises an

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Struggling Battambang artist dreams of staging full-scale gallery exhibition

    Leav Kimchhoth, a 55-year-old artist from Battambang province, is a familiar face to locals and tourists alike on the streets of the riverside in Phnom Penh. The one-armed painter and illustrator often hawks his work near the night market on weekends and public holidays. He

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • New Law on Taxation comes into effect

    Cambodia has enacted the eagerly-awaited new Law on Taxation, which aims to improve the national tax regime’s compliance with present and future international standards and economic conditions; encourage accountability, effectiveness and transparency in the collection process; and promote investment in the Kingdom. King Norodom

  • PM warns of int’l election interference

    With the national election scheduled to take place in less than two months, Prime Minister Hun Sen has warned foreign nations and their diplomats not to interfere into Cambodia’s domestic affairs. He also hinted that their statements on court verdicts handed down to any