PPAP's 4Q17 review: net profit jumps 60% YoY in 4Q17; 30% YoY in 2017

Container throughputs in 4Q17 surge 23.3% YoY

• Container throughputs handled by PPAP during the fourth quarter came to 45,493 TEUs, up 23.3%, with container cargo volume rising 13.0% compared to the same period in 2016. Meanwhile, general and oil cargo volumes surged 28.0% YoY and 12.1% YoY to 105,282 tonnes and 182,043 tonnes, respectively.

• In 2017, the port operator achieved a 21.8% growth in container throughputs and a 14.4% climb in total cargo volume. This remarkable increase was particularly driven by strong growth in imports of construction materials and exports of garment and footwear products through PPAP terminals. This is not surprising given vigorous economic activities in the rapidly growing Cambodia.

Top-line posts double-digit YoY growth for third quarter straight

• Thanks to the robust increase in cargo traffic, PPAP saw double-digit YoY growth in revenue for a third quarter straight. Top line rose 18.3% YoY to KHR19.2bn in 4Q17, from 16.2bn in 4Q16. Main sources of revenue including income from stevedoring, lift-on lift-off (LOLO), and port services soared 16.8%, 19.4%, and 12.3% YoY, respectively, and together accounted for 93.5% of the total revenue. In the fourth quarter of 2017, PPAP did not earn at all from sand-dredging services, most likely due to fiercer competition from private firms offering similar services.

• According to the Company’s unaudited financial report, total revenue in 2017 reached a record high of KHR76.27bn, up 15.5% compared to a year earlier. While last year saw a reduction in income from sand-dredging and storage services, other incomes including trucking and gate fees jumped 57.6% YoY on the rise of cargo traffic.     

Operating profit soars on modest increase in expense

• While the port operator achieved more than 18% revenue growth, operating expense in 4Q17 declined by 3.5% YoY. As a result, EBITDA in the fourth quarter soared 35.4% YoY to KHR10.33bn with EBITDA margin expanding by 6.8%pt YoY. Meanwhile, EBIT came to KHR7.38bn with an EBIT margin of 38.4% (+6.4%pt YoY). Although depreciation expense increased 21.2% YoY as a consequence of the company’s post-IPO expansion, this was slower than EBITDA increase, and so EBIT rose as much as 42.0% YoY.

• In 2017, EBITDA and EBIT amounted to KHR41.79bn (+22.7 YoY) and KHR30.09bn (+23.1 YoY), respectively.

Net profit jumps 60.6% YoY in 4Q17; 30.9% YoY in 2017

• With finance cost dropping slightly, pre-tax profit surged 58.1% YoY to KHR6.03bn, and net profit jumped 60.6% YoY to KHR5.26bn in 4Q17.

• 2017 was marked by the remarkable performance in the third and fourth quarters, with net profit in each quarter increasing more than 40% YoY. As a result, net profit reached a record high of KHR21.58bn.