PPAP's 3Q21 review: revenue surges on rising export shipments

Equity Report / November 30, 2021

Container throughput soars 27.4% YoY thanks to export shipments growth

  • In 3Q21, container throughputs reached a record high of 109,124 TEUs, an increase of 27.4% compared to the same period last year. The increase in container throughputs can be attributed to the robust growth in export activities handled at PPAP, with container shipment for export surging 30.3% YoY to 248,044 tons. Total container shipments reached an all-time high of 614,014 tons between July and September this year, up 8.2% YoY, despite container shipments for import decreasing slightly by 3% to 365,970 tons. However, in the third quarter, total cargo shipments handled by PPAP decreased slightly by 2.3% YoY to 977,945 tons, as general cargo shipments dropped 21.9% YoY to 178,288 tons, while oil & gas cargo shipments fell 9.4% YoY to 185,643 tons.
  • In the first nine months of 2021, container throughputs climbed 15.9% YoY to 256,407 TEUs, from 221,292 in the same period last year. While container shipments for import via PPAP fell 10.5% YoY to 928,600 tons, those for export surged 26.9% to 643,719 tons in the first three quarters of the year. As a result, total container shipments saw a modest growth of 1.8% YoY. Meanwhile general and oil & gas cargo shipments rose solidly by 5.0% YoY and 9.3% YoY, respectively.


Revenue top KHR36.9bn in 3Q21 as core services income surge

  • PPAP earned KHR36.9bn in total revenue in 3Q21, up 36.8% QoQ and 19.0% YoY, driven by a surge in core services income. Income from stevedoring and lift-on lift-off (LOLO) services soared 20.5% and 17.9% YoY to KHR16.7bn and KHR13.4bn, respectively, while income from storage services surged 32.7% YoY to KHR0.9bn, thanks to the remarkable increase in container shipments for export. On the other hand, port due & charge increased modestly by 3.6% YoY to KHR4.0bn as cargo vessel traffic decreased slightly due likely to the shrinking import shipments. Other income, which include gate fees trucking fees, logistic service fees, stuffing/unstuffing service fees, and more, jumped 53.9% YoY to KHR1.9bn in 3Q21.
  • From Jan to Sep 2021, revenue totaled KHR92.9bn, a solid increase of 11.4% YoY. Income from stevedoring, LOLO, and storage services grew robustly by 14.0%, 11.6%, and 17.0% YoY, respectively. Only port due & charge came to a negative growth, decreasing by 6.0% YoY as the number of cargo vessels fell from 1,759 in 9M20 to1,744 in 9M21. The notable revenue increase in 3Q21 made up for the modest revenue growth in the first half of the year, which saw a single digit growth for the first time in five years.


Operating profit margin expand as general administrative expenses fall

  • EBITDA and EBIT rose 24.7% YoY to KHR24.9bn and KHR21.3bn in 3Q21, respectively. EBITDA margin expanded 3.1%pt to 67.5%, while EBIT margin increased 2.6%pt to 57.7%. Although the cost of services climbed 23.8% YoY along with the services income growth, general administrative expenses fell 1.6% YoY, driven mainly by 8.6% YoY decrease in salaries and wages, 49.0% YoY decline in donation, and 26.9% drop in business entertainment expenses.
  • In the first nine months of the year, EBITDA rose 18.7% YoY to KHR60.4bn with EBITDA margin increasing by 4.0%pt, while EBIT grew 18.4% YoY to KHR50.5bn with EBIT margin expanding by 3.2%pt. The improved operating profit margin is thanks to the drop in general administrative expenses.


Bottom line surges 25.6% YoY in first nine months

  • PPAP earned almost KHR16.0bn in net income in 3Q21, the largest profitability it has achieved in a single quarter. Between Jan and Sep 2021, the port operator also recorded the highest nine-month net profit of KHR38.6bn. This is an increase of 25.6% YoY, compared to a negative growth of 13.6% during the first nine months of last year when PPAP’s business seemed to be affected the global pandemic.


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