Cambodia Investment Review

Phnom Penh Autonomous Port posts $3.3M in Q1’22 net profit

Phnom Penh Autonomous Port posts $3.3M in Q1’22 net profit

Harrison White

Phnom Penh Autonomous Port (CSX:PPAP) has announced an after-tax-net profit of $3.36 million a slight decrease from $3.44 million over the same period last year as the port continues to develop its infrastructure.

Phnom Penh Autonomous Port (CSX:PPAP) earned an after-tax profit of $12.6 million in 2021 up from $10 million in 2020 and 14% higher than forecasted. To read more about the port 2021 annual results click here

Phnom Penh Autonomous Port is one of only two international ports in Cambodia. Functioning as Port Operator and Port Authority, PPAP provides a variety of main port services and other relevant services.

The company’s main revenue streams are from manual and mechanical lifting on and lifting off for cargo ships docked at the port.

In a quarterly statement to the market CEO and Chairman Hei Bavy commented that for the first quarter of 2022, total revenue was $8.93 million achieving around 25% of planned revenue for 2022 and an increase of $1.76 million.

“This achievement was 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,” Bavy said.

“PPAP has utilized all the mechanisms by strengthening the service quality, expanding storage capacity, infrastructure development, work of Topo Hydrographic, and installing the new machinery and facilities,” he added.

Cambodia’s best performing stock

PPAP has been Cambodia’s best-performing main board stock since it was listed currently trading around KHR 15,500 a share up around 300% from its 2015 IPO price with the second-lowest price-to-earnings (P/E) ratio on the exchange at 6.34.

The company first floated with a guaranteed dividend yield of 5% per year of IPO price however private investors have recently told Cambodia Investment Review that the ports 2021 annual dividend of KHR 332.8 a share explaining that since listing in 2015, earnings are up 300%, but the dividend is up just 30%.

Speaking to Cambodia Investment Review after the annual general meeting Stephen Higgins from Mekong Strategic Partners who holds 6.67% of total voting shares expressed his continued frustration with the perceived low dividend yields.

“Their payout ratio is way below peers across the region, even though most ports have similar investment needs, and we just don’t understand it. Anyone buying PPAP shares today is getting a dividend yield of just 2%, which is basically putting a cap on the current share price,” Higgins explained.

In response, Deputy Director-General of PPAP Hei Phanin has previously told Cambodia Investment Review although the five years 5% dividend guarantee has now ended the board of directors has always expressed the hope to maintain or continue the positive growth of the company’s dividend policy. To read more about the company’s 2021 annual dividend click here.

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