The average net profit margin at the Cambodia Securities Exchange declined by more than two percentage points last year, which CSX says should not worry investors since companies listed at the local stock exchange are still performing well.
According to a recently released report, the average net profit margin for the five companies listed at CSX has been on the decline for the last three years. In 2017, it was 14.58 percent, a drop from 2016’s 16.88 percent and 2015’s 19.42 percent.
Net profit margin is the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company’s total revenue.
The company with the highest net profit margin last year was Phnom Penh Autonomous Port (28.44 percent), while Grand Twins International had the lowest (0.82 percent).
Soleil Lamun, director of the Listing & Disclosure Department at CSX, told Khmer Times yesterday that despite the drop in net profit margins over the last three years, all companies listed in CSX continue to show a positive performance.
“Obviously, the fact that we have a downward trend is not good news,” he said. “However, the average net profit margin is still at a very good level, better, in fact, than many other exchanges.”
He explained the decline could be the result of higher levels of investments during the companies’ first years in CSX, which would have eroded profits. He said those investments will start paying off soon, increasing profit margins for the companies in the near future.