Phnom Penh Autonomous Port (PPAP), one of three state-owned enterprises listed in the local stock market, will increase dividend payouts by 20 percent for those who own company shares as of March 9.
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The increase in cash dividends follows a rise of more than 30 percent in the company’s net profit last year, according to PPAP’s unaudited financial results, which were presented to the Cambodia Securities Exchange (CSX) last Thursday.
Cash dividends will amount to 1.2 billion riel, or $311,864. The dividend payout ratio is set at 5.86 percent and shareholders will receive 307 riel ($0.076) per share.
With an opening price of 5,120 riel per share during the IPO, the dividend yield is 6 percent.
“While the minimum dividend yield promised is 5 percent, the fact that they are giving 6 percent already indicates the good intention of the company to please its shareholders,” said Soleil Lamun, director of CSX’s listings and disclosure department.
“I would like to remind you that 6 percent is comparable, if not higher, than the fixed deposit rate given by big commercial banks.
“Comparisons to smaller banks or even microfinance institutions who give over 8 or 9 percent are not really relevant, since PPAP is a state-owned enterprise and more or less monopolistic in its sector. Ultimately, it is a question of preference: lower return with lower risk, or higher return with higher risk,” he said.
Last year, the port reported a gain in total revenue of 15.4 percent, which amounted to $18.8 million. Net profit, which rose by 30.9 percent, reached $5.3 million.