Performance Highlights

1Q23 review: Revenue and profit plunge on trade decline

Container throughputs down 24.7% YoY in 1Q23

• In 1Q23, the port operator faced significant challenges as total container throughputs dropped by 24.7% YoY to 77,341 TEUs. Container shipments (in tons) decreased by 15% compared to the previous quarter and 6% compared to the same period last year. Container shipments for imports and exports decreased by 4% YoY and 7% YoY, respectively, as global economic slowdown has affected demand for Cambodia’s export products, which in turn decreased demand for imports of raw materials. In the first quarter of 2023, Cambodia’s total exports and imports declined 8.1% YoY and 27.0% YoY, respectively.


• While container cargo shipments declined 5.9% YoY to 507,019 tons in 1Q23, general cargo shipments increased 9.5% YoY to 229,285 tons, likely due to rising exports of milled rice (Cambodia Rice Federation reported an increase of milled rice export volume by 3.5% YoY in 1Q23). Meanwhile, oil & gas imports handled by PPAP declined 16.0% YoY to 219,325 tons, with the number oil vessels falling by 17.5% YoY from 160 vessels in 1Q22 to 132 vessels in 1Q23. The oil & gas imports handled by PPAP dropped despite the increase in overall Cambodia’s imports as more oil & gas were imported through Sihanoukville Autonomous Port, which saw an increase of 10.3% YoY during the same period.


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Top line falls 15.2% YoY on declining cargo traffic

• In Q1 2023, PPAP experienced a challenging period with a decrease in total revenue to KHR30.8bn from KHR36.3bn YoY. The largest contributor to the revenue was stevedoring, generating KHR12.3bn, followed closely by LOLO services at KHR10bn. These main revenue streams saw a decline of over 20% YoY in 1Q23 as the result of the decline in cargo traffic. Meanwhile, port services, the third largest source of revenue, increased over 15.3% YoY to KHR4.7bn, due likely to the jump in the number of passenger boats thanks to the gradual reopening after COVID-19 and increasing tourist arrivals. Other sources of revenue including storage services, trucking and survey revenue all saw a drastic decline by more than 50% YoY. However, the company witnessed growth in the "Others" category, led by logistic services, which generated KHR3.2bn in income in 1Q23.


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Operating profit suffers a big hit as depreciation and personnel expenses continue to rise

• EBITDA fell sharply by 37.5% YoY to KHR14.2bn compared to KHR22.8bn in 1Q22. Operating cost (excluding depreciation) rose 7.9% YoY to KHR17.9bn, driven mainly by 18.2% YoY increase in personnel expenses, 31.7% YoY increase in fuel and gasoline expenses, 35.2% YoY increase in repair and maintenance expenses, and 174% YoY jump in donation expenses. In addition, with depreciation expense rising 16.7% YoY to KHR4.5bn, EBIT plummeted 48.5% YoY to KHR9.7bn in 1Q23. The EBIT margin contracted 20.4%pt to 31.6% in 1Q23 from more than 50% during the same period last year.


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Quarterly net profit drops to lowest since 2Q19

• PPAP earned KHR7.97bn in net profit in 1Q23, recording the lowest quarterly earnings since 2Q19. The last trailing twelve months (ttm, up to 1Q23) earning per shares (EPS) decreased to KHR2,026 from KHR2,706 in the full year 2022. With the closing share price of KHR 14,800 (on closing price on April 28, 2023), the P/E ratio increased to 7.3x, up from 5.3x based on 2022 EPS. As of the closing price on August 8, 2023, the stock is trading at a P/E ratio of 6.96x, much lower than its ASEAN peer median.


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Container throughputs

Container, general, and oil cargoes

Breakdown of revenue

Financial Ratios