PPWSA shares gain as net income jumps in 4Q16

Shares in Phnom Penh Water Supply Authority (PPWSA) rose KHR100 from the previous close to KHR4,100 (-0.49% MTD, 0.00% YTD). The stock’s gain followed the release last Friday of 4Q16’s results, which showed net income in the last quarter of 2016 climbing 97.6% QoQ or 24.4% YoY to KHR20.2bn. While the water supplier’s revenue during the period dropped 13.1% QoQ or 6.0% YoY to KHR46.9bn due to a decrease in revenue from construction services, the significant increase in earnings was driven by net finance income, which went from a loss of KHR5.4bn in 3Q16 and +KHR5.0bn in 4Q15 to +KHR14.4bn in 4Q16. According to the unaudited report, net income in 2016 came to KHR50.5bn, a 6.4% decline from 2015. Based on today’s close and 2016 earnings, the stock is trading at a P/E of 7.06x. (Source: YSC Research)