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Listed firms report sharp rise in profits

May Kunmakara / Khmer Times Share:
Phnom Penh Autonomous Port led the way with high profits. KT/Mai Vireak

Five companies listed on the Cambodia Securities Exchange reported sharp increases in profits last year.

The CSX reported yesterday that the higher profits brought the Net Profit Margin (NPM) to 20.89 percent, a rise from previous years.

Leading the pack was state-owned Phnom Penh Autonomous Port (PPAP) which reported a high increase of 39.09 percent followed by Phnom Penh Water Supply Authority (PWSA), Preah Sihanoukville Deep Sea Port (PPSP) and Phnom Penh Special Economic Zone (PAS) which registered 27.77 percent, 19.86 percent and 16.54 in profits respectively.

Taiwan-owned garment manufacturing factory Grand Twins International (GTI), on the other hand, registered the lowest net profit margin of 1.2 percent. Compared to 2017, the average net profit margin of all listed stocks increased by more than 40 percent.

“During the last 3 years, all stocks showed a positive performance, in terms of both revenue and net income, except for GTI where the net income dropped in 2017 and slightly recovered in 2018,” the report said.

“Last year was a remarkable year. CSX index closed at 480.98 point, an increase of more than 40 percent compared to 2017. Out of the 5 listed stocks, PAS and PPAP showed a dramatic increase in their stock price with the figure of 98 percent and 49.4 percent respectively. PWSA, GTI and PPSP, on the other hand, remained quite stable during the year,” it added.

Kim Sophanita, director of CSX’s market operations department, said based on their 2018 annual reports, each listed company, increased their overall operating profits in 2018 due to a rise in sales and other revenues, and a drop in prices of raw materials.

“This data shows clearly the potential of investing in listed companies since they could generate relatively high net profit margin compared to other investments,” she said. “Moreover they are more transparent and reliable due to a strong regulation compliance compared to unlisted companies. I think it will attract more public investors to eye stock investment.”

“Going through the process of IPO will automatically help companies improve their performance because it helps to standardize the companies, improve corporate governance and enhance company credibility,” Ms Sophanita added.

According to the report 2018 had the highest trading volume comprising nearly 4 million shares compared to the previous three years. For the first time, PAS accounted for more than 60 percent of the total trading volume, followed by PWSA and PPAP that accounted for 16 percent and 12 percent respectively. PPSP and GTI, on the other hand, contributed only 5 percent and 4 percent to the total trading volume.

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