Equity Report

27th April 2023

PPAP's 2022 Review: A positive year with strong profitability

Performance Highlights

FY ends Dec (KHR’bn)4Q22% QoQ% YoY2022% YoY
Revenue32.88-18.5%1.8%148.824:31 AM
Finance cost-1.09-10.2%-4.4%-4.44-4.5%
Net profit12.52-29.8%-4.3%58.5013.2%
EBITDA margin66.7%-1.6%pt-0.7%pt64.3%pt-2.0%pt
EBIT margin54.4%-4.0%pt-1.5%pt53.7%pt-2.0%pt
Net margin38.1%-6.1%pt-2.5%pt39.3%pt-4.8%pt

2022 Review: A positive year with strong profitability

Container throughputs surge 20% YoY in 2022 despite the global supply chain disruption

  • Container throughputs reached 417,412 TEUs in 2022, up 20% YoY. Imports of raw materials for garments represented 10% of total imports, rising 15% compared to 2021. Garment exports accounted for 74% of all exports, increasing 17.58% YoY, which contributed to the increase in container throughputs.

  • Overall container shipments increased 15% from the same period in 2021 to 2,437,136 tons in 2022, mainly due to a 32% YoY rise in exports. On the other hand, the growth of cargo shipment was only 5% YoY. The total volume of shipment came to 4,025,965 tons, of which 817,233 tons (-9% YoY) were shipped as oil and gas cargo, and 771,596 tons (-8% YoY) were shipped as general cargo.

  • The number of vessels increased significantly from 2,302 to 3,783 over the same period in 2022, a gain of 64.3%. The noticeable increase in the total number of vessels was mainly driven by the two-fold increase in the number of international vessels and barges. Notwithstanding the disruption to the global supply chain, international vessels made up 86.7% of all vessels, with oil vessels making up the remainder.

Top line grows 18.8% YoY, reaching the record high of KHR148.82bn in 2022

  • In 2022, PPAP reported a record revenue of KHR148.82bn, up 18.8% YoY. The increase was attributable to the surge in container throughputs of 20% YoY and 15% YoY rise of total export and import. The two main sources of revenue, stevedoring and LOLO, accounted for 44% (+18% YoY) and 35% (+15% YoY) of the total revenue, respectively. Income from storage services increased by 21% YoY to KHR4.1bn and port services by 22% YoY to KHR17.7bn. Meanwhile other revenue streams such as gate fees, weighting fees, stuffing/unstuffing fees, trucking fees, sand dredging fees and others jumped 42% YoY to KHR9.6bn, compared to KHR6.8bn in 2021.

  • Other income such as rental income, interest income, unwinding effect of long-term deposit, income from net investment in subleases, reversal of impairment loss on receivables were up 56.8% YoY from KHR13.6bn in 2021 to KHR21.3bn in 2022.

Operating profit margin squeezed as general administrative expenses rises 29.9% YoY

  • PPAP reported a gross profit of KHR97.9bn in 2022, an increase of 15% compared to KHR85.3bn in 2021. The cost of services rose by 27.4% YoY to KHR50.9bn, driven by increases in depreciation by 19.9% YoY, crane fees by 38.1% YoY, and fuel and gasoline expenses by 90.8% YoY. Due to this, the gross profit margin decreased from 68.1% in 2021 to 65.8% in 2022—a decrease of 3.4%pt YoY.

  • EBITDA and EBIT increased 16.5% YoY and 16.4% YoY to KHR95.7 billion and KHR79.8 billion, respectively, in 2022. While EBIT margin decreased 2.0%pt YoY to 53.7%, EBITDA margin decreased 2.0%pt YoY to 64.3%. The general administration costs soared 29.9% YoY to KHR39.4bn, mainly due to increases in salaries and wages by 11.2% YoY, donation expenditures by 17.1% YoY, utilities and fuel expenses by 23.7% YoY, and the shocking jump in business entertainments by 119.2% YoY.

Net profit rises 13.2% YoY to record high EPS

  • PPAP earned almost KHR58.5bn in net profit in 2022 compared to KHR51.7bn (+13.2% YoY), the largest profitability the port operator has achieved in a single year. Even though the finance cost showed a decline of 4.5% YoY to KHR4.4bn, the net profit margin narrowed by 4.8%pt YoY to 39.3% as cost of services and general administrative expenses increased more than the revenue growth.

  • Earnings per share (EPS) increased 13.2% YoY to the record high of 2,828KHR in 2022. PPAP is trading at a 2022 P/E of 5.19x compared to 5.88x in 2021 versus the median P/E of its peers of 15.67x.

Container throughputs

Container throughputs 20222021Change%Change% total
Import (tons)1,255,9871,221,61534,3722.8%52%
Export (tons)1,181,149893,916287,23332.1%48%
Total (tons)2,437,1362,115,531321,60515.2%100%
Source: The Company

Container, general, and oil cargoes

Ton20222021Change%Change% total
Oil &gas817,233899,774-82,541-9.2%20%

Breakdown of revenue

Source of revenue20222021Change%Change% total
Port services17,69614,4783,21822%12%

Financial Ratios

FY end to Dec20182019202020212022
Per share ratios
EPS (KHR)1,5842,2631,9442,4992,828
BPS (KHR)27,38229,92631,52934,10537,149
BPS* (KHR, excluding Class C)9,24911,79313,39615,97219,015
EBITDA/Shr (KHR)2,3113,7073,2453,9744,628
SPS (KHR)4,0535,3265,3336,0547,195
DPS (KHR, of Class A)333333333334334
Share Price7,68012,50011,70014,70014,900
Valuation ratios
P/E (x)4.855.526.025.885.27
P/B (x)0.280.420.370.430.40
P/B*(x, excluding Class C)0.831.060.870.920.78
EV/EBITDA (x)3.573.313.913.803.02
P/S (x)1.902.352.192.432.07
Dividend yield on end-period close (%, of Class A)4.332.662.842.272.24
Dividend yield on current price (%, of Class A)2.382.382.382.382.38
Dividend yield on IPO price (%, of Class A)6.506.506.506.526.52
Dividend payout (%, of Class A)**21.0114.7117.1213.3611.80
Dividend payout (%)11.838.8210.267.987.06
Profitability ratios
EBITDA margin (%)57.0269.6060.8665.6464.32
EBIT (%)42.7258.1250.7054.7553.65
Net margin (%)39.2742.8237.2641.2140.00
ROE (%)5.957.966.477.608.08
ROE* (%, excluding Class C)18.4621.6815.7816.9916.45
ROA (%)4.606.014.975.966.24
Efficiency ratios
Asset turnover (x)
Receivables turnover (x)8.047.947.349.019.42
Financial strength
Total Debt/ Total Equity (%)19.0916.3514.1211.959.98
Net debt/equity (%)2.07-0.753.151.20-1.91
Interest coverage (x)7.5611.2512.5514.7517.98
Inter & ST debt cover (x)2.744.534.365.246.16
Current ratio (x)4.844.173.863.363.49
Quick ratio (x)4.844.173.863.363.40
Net debt/EBITDA (x)0.24-0.060.310.10-0.15
EPS = Earnings Per Share; BPS = Book value Per Share; SPS = Sales Per Share; DPS = Dividend Per Share; Current price is closing price on the day of the report; *Excluding capital of Class C shares that are wholly held by the government; **DPS to Class A shares divided by EPS;

April 3, 2023

Closing price KHR 14,940
IPO priceKHR 5,120

Stock info

IndustryTransport Support Services
Market cap (KHRbn)309
Outstanding shares (mn)20.70
Majority shareholder0.00
Ministry of Economy & Fin (%)80.00
Avg daily vol. (last 6 months, shr)537.99
Free floating shares (last 6 months, %)4.00
Price low/high (last 6 months, KHR) 13,940 ~ 15,520
EPS (KHR) (ttm)2873
P/E (x) (ttm)5.15
P/B (x) (mrq)0.40
P/B* (x) (mrq)0.78
EV/EBITDA (x) (ttm)3.04
D/E (%) (mrq)18.04
Note: ttm = trailing twelve months (2022); mrq = most recent quarter (4Q22); *Excluding equity of Class C (non-voting) shares.

Stock Performance

Trading volume & value in last 12 months

Month-YearMonthly tradingAverage per day
Volume (shr)Value (KHR'mn)Volume (shr)Value (KHR'mn)

Earning strength: EPS (TTM, KHR)

Quarterly revenue (KHR'bn)

Quarterly profit margin (%)

Quarterly revenue & profit growth (%)

Annual revenue & net profit (KHR'bn)

Annual profit margin (%)

Annual revenue & profit growth (%)

Condensed Financial Statements

Statement of comprehensive income

FY to Dec (KHR'mn)20182019202020212022
Operating costs-41,926-50,193-53,121-56,596-74,363
Other income5,89616,6999,94613,56321,272
Depreciation & Amortization-11,986-12,642-11,201-13,629-15,880
Finance costs-4,734-5,694-4,455-4,649-4,441
Income tax expense1,693-11,538-11,259-12,222-16,905
Net profit32,76746,80640,21351,69558,498
Re-measurements of defined benefit liability146367890-861,029
Comprehensive income32,91447,17341,10351,61059,527

Statement of financial position

FY to Dec (KHR'mn)20182019202020212022
Non-current assets642,726683,327721,354798,996883,821
Property, Plant & Equipment296,566316,092359,317420,960443,125
Investment properties341,635345,781342,559344,770346,794
Other non-current assets4,52421,45419,47933,26693,902
Current assets109,161134,216114,96696,811128,661
Trade receivables12,74728,27643,38120,91834,166
Cash & cash equivalent96,414105,94171,58575,89394,495
Total assets751,887817,543836,321895,8071,012,482
Non-current liabilities162,949166,374154,407161,527207,181
Long-term debts99,80692,78783,73075,89868,177
Other non-current liabilities63,14373,58870,67785,629139,004
Current liabiliites22,55132,16729,74728,83836,901
Trade & other payables10,81613,60712,3599,75313,311
Other current liabilities11,73518,56017,38819,08523,590
Total liabilities185,501198,541184,154190,365244,082
Shareholders' equity566,386619,002652,167705,442768,400
Share capital457,814457,814457,814457,814457,814
Development fund00000
Retained earnings31,07047,17341,10351,68659,527
Other Capital2,4659,4855,4479,10314,468
Total liabilities & equity751,887817,543836,321895,8071,012,482

Statement of cash flows

FY to Dec (KHR'mn)20182019202020212022
Operating cash flow98,29151,83139,86989,73762,339
Net profit32,76746,80640,21351,69558,498
Depreciation & amortization11,98612,64211,20113,62915,880
Chg in working capital1,208-9,209-12,93423,860-8,767
Investing cash flow-32,137-31,971-51,665-57,306-46,023
Net CAPEX-32,486-28,191-57,626-71,955-31,566
Financing cash flow-64,062-16,626-17,155-16,693-18,409
Net chg in share capital00000
Net chg in debt-8,373-8,388-8,441-8,421-8,460
Cash dividend-3,514-3,877-4,127-4,146-4,420
Net change in cash & equivalent2,0923,234-28,95115,739-2,092
Beginning cash & equivalent34,54636,14439,58010,93426,948
Ending cash & equivalent36,14439,87410,85626,69625,125

Equity Report

27th April 2023

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