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PPWSA Profits Plunge 65%

Khmer Times Share:

The Cambodia Securities Exchange (CSX) ─ listed Phnom Penh Water Supply Authority (PPWSA) saw its profits plunge by more than 65 percent in the first quarter of this year with total revenue declining by more than 20 percent in the same period.
 
According to a financial statement issued by the PPWSA to the securities exchange last Friday, in the first quarter of 2016, total revenue of the state-owned company was about $13 million.
 
This was a 20.93 percent fall compared to the same quarter last year that saw a total revenue of $16.6 million.
 
Meanwhile, PPWSA’s first quarter net profit was $1.895 million, a fall of about 65.05 percent compared to the same period last year that saw a net profit of $5.422 million.
 
Lamun Soleil, director of the Market Operations Department of the CSX said PPWSA’s financial statement indicated that the state-owned company made big capital investments in the reporting period.
 
He said the net profit drop did not mean the company was doing badly.
 
“You are invited to dig into details to find the reasons,” Mr. Soleil told reporters.
 
“For those investors who examine in detail this financial performance, they would not find negatives,” he added.
 
But Mr. Soleil added the stock price movement of PPWSA might not be predictable on the securities exchange.
 
Svay Hay, president and CEO of the brokerage firm Acleda Securities said the decrease or increase of a company’s revenue will definitely affect its stock price on the bourse. But he added that the fall in its listed price was not an indication of its long-term business performance.
 
“I would say it’s a bit early to predict the performance of a business with just statements from the first quarter,” said Mr. Svay Hay.
PPWSA was the first company to be listed on the CSX in April 2012. Its listed price rose by 48 percent from the initial public offer (IPO) of 6,300 riel ($1.56) to close at 9,300 riel ($2.30).  Then, four days after the launch of the IPO, the price sharply went up by more than 50 percent to 10,300 riel, or about $2.57. Yesterday, PPWSA closed at 4,800 riel ($1.20) with a trading volume of 1,000 shares ‒ the same price as it was a day earlier, according to the CSX.

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