Engineering and construction firm DBD Engineering (CSX:DBDE) has posted an annual after-tax profit of $388,200 for 2021 as difficulty in supply chains as well as shrinking opportunities impact the construction sector.
In a fourth-quarter filing to the Cambodia Securities Exchange outlined, “due to the COVID-19 outbreak the company met some difficulty on the material supply due to the supplier requiring a longer period of time for the production, and shipping was also quite challenging.
There was also another difficulty in manpower after the lockdown as a lot of workers returned to their homeland, our human recourse department worked very hard on recruiting new workers and training to ensure that our worker had enough skills to complete the work.
However, the company had no project delayed due to DBD not meeting its obligations. In the fourth quarter this year, the company had managed to make a profit of $371,113 compared to $378,044 in the fourth quarter of 2020.”
In the fourth quarter of 2021, DBD had larger revenue from construction compared to the fourth quarter of 2020. Revenue from construction depends on the progress of work done and this year DBD signed one big project, the “Chip Mong Mega Mall 271”.
According to the company, there were shrinking opportunities in the construction industry citing 4,303 projects were approved in 2021 equal to $5.33 billion, a decrease of 31.21% compared to 2020.
There were 4,841 projects approved equal to $7.75 billion, the forecast opportunities growing of construction industry has 6,760 approved projects in 2022, equal to $15.52 billion, they added.
The principal activities of the Company are mechanical and electrical contractor, plumbing and firefighting contractor, air conditioning cold room HVAC and building maintenance. The company had 966 employees in 2021 down from 1,043 employees in 2020.
First company to list on CSX Growth Board
DBDE listed on the CSX Growth Board in 2021 at KHR 2,380 a share and is currently trading at KHR 2,440. Cambodia Investment Review reported at the time the company was the first to list on Growth Board designed for SMEs to raise capital since its launch in 2015.
All buyers of the IPO have been guaranteed a 5.5% minimum guaranteed dividend for the first three years. Brokerage firm SBI Royal sold all 6,461,538 shares at KHR 2,380 raising $3.88M.
There were over 3.4 million shares sold to strategic investors. If removing the strategic investors there was a total of 949 individual buyers which equates to 3,226 shares valued at KHR 9.12 billion ($2,282) on average per investor. According to the company listing on the exchange cost approximately $188,000 in underwriter fees to SBI Royal.