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Two CSX-listed firms report decline in profit

Two CSX-listed firms report decline in profit

Two stock-listed companies trading on the Cambodia Securities Exchange (CSX) posted a decline in net profit in the first quarter of the year.

Leading industrial zone developer and operator Phnom Penh Special Economic Zone Plc (PPSP) reported in its CSX filing on Tuesday 15.748 billion riel in first quarter revenue ($3.8 million), a decrease of 82 per cent compared to the same period last year.

Net profit was 474 million riel, a 99 per cent plunge year-on-year.

CSX vice-chairman Ha Jong-weon told The Post on Tuesday attributed the disappointing first-quarter results to a decline in land sales.

“This type of business does not generate regular income but is seasonal. Furthermore, this business mainly deals with foreign companies and investors that are currently impacted by Covid-19,” he said.

Last month, PPSP signed a lease agreement for 6.4ha of additional land with Chinese knitwear manufacturer Marvel Garment Co Ltd.

Marvel Garment, the local arm of leading Chinese clothing manufacturer Shenzhou International Group Holdings Ltd, is currently in Phase III of development – which covers an area of 43ha.

Sri Lankan-owned LOLC (Cambodia) Plc, a microfinance institution which listed corporate bonds on the CSX in May last year, reported in its Monday filing 155.163 billion riel in first-quarter income, an increase of 54 per cent compared to the same period last year and 37.967 billion riel in net profit, a decline of about seven per cent.

CSX’s Ha said the drop in profit was mainly due to credit impairment losses.

“However, the solvency ratio of 18.5 per cent and liquidity ratio of 206 per cent are above the regulatory requirement and a 0.79 per cent non-performing loan ratio is considered low if compared to the industry average,” said Ha.

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