Cambodia Investment Review

Phnom Penh port earns $12.6M in profit for 2021

Phnom Penh port earns $12.6M in profit for 2021

Harrison White

Phnom Penh Autonomous Port (CSX:PPAP) has posted a strong after tax profit of $12.6 million in 2021 up from $10 million in 2020 and 14% higher than forecasted.

In a fourth quarter filing to the Cambodia Securities Exchange PPAP Chairman Hei Bavy stated: “For the twelve-months of 2021, total revenue from Port Operation and Port Authority is $30,783,715 achieved 106.22% of planning 2021 and compared to twelve-month of 2020 increased by $3,735,303 or 13.53%.

However, net profit for twelve-month of 2021 is $12,707,8314 achieved 114.30% of planning 2021 and compared to twelve-month of 2020 increased to $2,846,956 or 28.56%. Apart from this, basic earnings per share in fourth quarter 2021 is $0.16.

The above achievement because of PPAP has paid the attention in providing the service of port operation with transparency and efficiency in responding confidently to the needs of customers.

In fact, PPAP has utilized all the mechanisms by strengthening the service quality, expanding storage capacity, infrastructure development, work of Topo Hydrographic, and installing the new machineries and facilities,” he said.

PPAP shares were publicly listed on the CSX in 2015 at KHR 5,120 during the IPO and are currently trading around KHR 15,120 a share today.

Private investors hope for increased dividend in 2022

The company has exclusive rights to operate within Phnom Penh’s 166-kilometer Port Commercial Zone and operates under the supervision of the Ministry of Public Works and Transport and the Ministry of Economic and Finance.

Cambodia Investment Review has previously reported on the state and private investors split over the KHR 332.80 per share annual dividend in 2021 ultimately approved by shareholders during the company’s Annual General Meeting.

PPAP has been one of the best-performing stocks on the Cambodia Securities Exchange which has been unable to generate a strong return on the initial investment for the majority of its seven listed companies. PPAP has the exchange’s second-lowest Price to Earnings ratio at around 6.45.

Mekong Strategic Infrastructure Ltd (the only other substantial shareholder besides the MEF) of PPAP with a 6.67% holding of listed shares released a report the stated comparing profit to earnings, PPAP is trading at least 48% discount to its peer, outlining this was a conservative estimate of peer comparison analysis.

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