Cambodia Investment Review

JS LAND PLC’s 2022 Annual Report Highlights Strong Sales and Growth Potential for Cambodia’s Affordable Housing Market

JS LAND PLC’s 2022 Annual Report Highlights Strong Sales and Growth Potential for Cambodia’s Affordable Housing Market

Cambodia Investment Review

JS LAND PLC (CSX:JSL) a leading real estate developer in Cambodia, has published its annual report for the fiscal year 2022, which highlights the company’s strong financial position, resilient market outlook, and potential for future growth. As the first real estate company listed on the Cambodia Securities Exchange (CSX) Growth Board, JSL is positioned to capitalize on the increasing demand for affordable housing in the country.

Read more: JSL 2021 Annual Report

The company’s annual report revealed a net loss of approximately $1.28 million for FY2022, compared to a net profit of around $24,621 for FY2021. This decrease is due to the fact that, as stated in the report, “revenue from The Garden Residency 2 (TGR2) project is only recognized when the ownership of the residential unit is transferred to the customer,” and the project is still under construction.

However, the company’s financial position remains strong, with total assets amounting to about $16.8 million and total equity standing at approximately $2 million, an increase of 174.78% compared to FY2021.

Confidence in the company’s growth potential

JSL has been a pioneer in affordable condominium projects in Phnom Penh, with its first project, The Garden Residency 1, completed and handed over to buyers in 2019. Building on this success, the company launched The Garden Residency 2 in 2020, which is on schedule to be handed over to buyers in 2023. Despite the challenges posed by the Covid-19 pandemic, the company has managed to achieve 71% sales for The Garden Residency 2 and is targeting a 90% sales rate before the handover.

Read more: JS Land hosts appreciation dinner after a successful public listing

Despite the uncertain outlook for the Cambodian property market, JSL plans to launch The Garden Residency 3 by the end of 2023. The Cambodian government forecasts a 5.6% GDP growth this year, with a stable financial sector, strong purchasing power among consumers, and robust monetary policy expected to drive market sentiment.

JS Land executive team celebrate Garden Residency 2 ‘topping’

The company’s focus on affordable housing aligns with the Cambodian government’s national housing policy, which was adopted in 2014 to promote the development of more affordable housing projects.

JSL’s initial public offering (IPO) on the CSX Growth Board listed 8,281,000 shares (32.21% of total shares) at around $0.46 per share, raising $2.12 million and putting the company’s market capitalization at $12 million. The share price has since increased to approximately $1.12 per share, reflecting investor confidence in the company’s growth potential.

JSL is well-positioned to capitalize on demand

JSL remains committed to its core goal of building quality condominiums catering to all segments of society. As mentioned in the report, “with our experience and market knowledge, we have decided to do what we are good at, which is to build affordable condominiums that we are confident of selling in the market at this challenging time.”

With Cambodia predicted to need an additional 50,000 homes per year until 2030 to accommodate its growing city population, JSL is well-positioned to capitalize on this demand. As a leader in affordable housing development, the company’s strong financial position, commitment to quality, and ability to adapt to market conditions make it a promising investment opportunity in the Cambodian property market.

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