CSX-listed companies report moderate growth

Khmer Times
May Kunmakara

There are five firms listed in the Cambodia Securities Exchange. KT/Mai Vireak

Most companies listed in the local stock market reported slow business performances in 2017, according to unaudited financial statements filed to the Cambodia Securities Exchange (CSX) on Monday.

Phnom Penh Water Supply Authority (PWSA), a state-owned enterprise, saw an increase of 16.8 percent in total revenue, which equaled $58.1 million, while net profit dropped by 32.3 percent to $5 million.

Meanwhile, Phnom Penh Autonomous Port (PPAP), another state-owned company, reported a gain in revenue of 15.4 percent, which amounted to $18.8 million. Net profit also increased, by 30.9 percent, to $5.3 million.

Revenue at Sihanoukville Autonomous Port (PAS) rose by 8.8 percent to $55.7 million. By contrast, net profit experienced a decline of 5.9 percent, shrinking to $6.1 million.

The loss in net profit for PAS came despite an increase in the volume of containers handled at the port. A port representative explained that the decline was the result of the depreciation of the Japanese Yen against the US dollar, with the port being the beneficiary of several loans from the Japanese government that are being used to expand the facilities.

According to the financial statement filed on Monday, total revenue for Phnom Penh SEZ Plc (PPSP) declined by 4.5 percent to $8.7 million. However, net profit rose markedly, by 46 percent, reaching $2.2 million.

“The sharp increase in net profit was the result of the sale of land during the fourth quarter of 2017. We will try to increase revenue from rental agreements and other services,” explained PPSP.

Lastly, Grand Twins International Plc (GTI), a Taiwan-owned garment manufacturing company, saw a slight decrease of 2 percent in revenue, which equaled $80 million. The company’s net profit, meanwhile, plummeted by 87.4 percent to $654,599.

“The drop in revenue came about because sales decreased following a delay in the delivery of some orders. It caused net profits after tax to decrease enormously in the fourth quarter,” the company said.

“We will continue to train our workers and improve our services to ensure we don’t miss any future deadlines.”

Prom Visoth, president and CEO of Acleda Securities Plc, said these financial results should not deter other companies from joining the Cambodian bourse.

“A decline in profits makes the companies less attractive, because it has an impact on share price and dividends,” said Mr Visoth.

“However, this doesn’t mean that other companies won’t be interested in joining the CSX.”