hatori bet

PPAP 1Q24 Review: Net Profit Falls despite Traffic Rebounding

Equity Report / July 3, 2024

               

               

Performance Highlights
FY ends Dec (KHR bn) 1Q24 4Q23 1Q23 % QoQ % YoY
Revenue 32.85 33.44 30.76 -1.8% 6.8%
EBITDA 14.11 16.97 14.23 -16.9% -0.9%
EBIT 8.91 12.03 9.73 -25.9% -8.4%
Finance cost 0.08 0.12 0.08 -36.1% -8.5%
PBT 8.99 12.15 9.81 -26.0% -8.4%
Net profit 6.19 9.59 7.96 -35.5% -22.2%
EBITDA margin 42.9% 50.7% 46.3% -7.8%pt -3.3%pt
EBIT margin 27.1% 36.0% 31.6% -8.8%pt -4.5%pt
Net margin 18.8% 28.7% 25.9% -9.9%pt -7.0%pt
 
1Q24 Review: Net Profit Falls despite Traffic Rebounding Container throughputs increased 20.4% YoY in 1Q24
  • In 1Q24, PPAP reported a surge in port activities as the total container throughputs increased by 20.4% YoY to 93,153 TEUs. Despite the robust throughputs increase, container shipment (in tons) decreased by 6.5% QoQ but moderately increased by 3.08% compared to the same period last year. Container shipments for imports and exports increased by 3.9% YoY and 2.3% YoY, respectively, due to the recovery of the manufacturing industry (exports of GFTs rose 20.0% YoY). In 1Q24, Cambodia s total imports and exports rose 6.4% YoY and 18.0% YoY, respectively, as reported by the General Deportment of Custom and Excise (GDCE).

  • While container cargo shipments increased 3.1% YoY to 522,654 tons, general cargo shipment robustly grew by 20.4% YoY to 276,023 tons, due to the rising exports of agricultural products (exports of agricultural commodities grew 28.1% YoY). Meanwhile, oil & gas shipments from PPAP marginally rose by 1.6% YoY while the number of oil vessel decreased marginally from 132 oil vessels in 1Q23 to 131 oil vessels in 1Q24. Despite an increase in Cambodia s oil & gas imports, PPAP s share of oil & gas imports has been declining YoY. This is due to Sihanoukville Autonomous Port (PAS) gaining more market share, capturing 73.5% of total oil & gas imports by the end of 1Q24.


Top line in 1Q24 grows by 6.8% YoY on increasing container traffic
  • PPAP earned KHR32.8bn in total revenue in 1Q24, up 6.8% YoY, driven mainly by the robust growth of 18.6% YoY from stevedoring. Income from LoLo and port services grew by 7.9% YoY and 13.3% YoY, respectively. Furthermore, the port witnessed a strong recovery of the tourism sector as tourist cruises and number of international tourists via Cambodia-Vietnam increased YoY by 29.7% and 82.9%, respectively. However, storage revenue declined 68.1% YoY and other income decreased by 38.4% YoY, driven by an 89.4% YoY decline in income from logistic services.


EBITDA in 1Q24 drops slightly as operating costs and depreciation expenses rise
  • In 1Q24, EBITDA slightly declined 0.9% YoY to KHR 14.1bn. Operating expenses excluding depreciation & amortization rose 12.4% YoY to KHR 29.1bn, driven mainly by 9.2% YoY increase in personnel expenses, 12.2% in crane charge, and a 92.5% YoY increase in business entertainment expenses. Furthermore, as depreciation expense rose by 15.4% YoY, EBIT declined 8.4%, squeezing its EBIT margin by 4.5%pt.


Quarterly net profit drops to lowest since 2Q18
  • PPAP earned KHR 6.19bn in net profit in 1Q24 (down 22.2% YoY) recording the lowest quarterly earnings since 2Q18. Despite the decrease in pre-tax profit, income tax expense surged 50.9% YoY, with the effective tax rate expanding by 12.3%pt to 31.2%, due mainly to the 52% increase in non-deductible expenses and a significant adjustment to estimates related to prior period. As a result, net profit margin decreased by 7.0%pt to 18.8%.

  • The last trailing twelve months (ttm, up to 1Q24) earnings per shares (EPS) decreased to KHR 1,795 from KHR 1,881 in 4Q24, representing the lowest EPS (ttm) since 4Q18, when it only achieved KHR 1,616. With the closing price of KHR 13,220 (end of March 2024), the 1Q24 ttm P/E ratio dropped from 7.40x in 4Q23 to 7.36x in 1Q24.

Container throughputs
Container throughputs 1Q24 % QoQ % YoY 2023 % YoY
TEUs 93,153 2.2% 20.4% 396,225 -5.1%
Tonnage          
Import (tons) 244,956 -7.8% 3.9% 1,159,273 -7.7%
Export (tons) 277,698 -5.4% 2.3% 1,273,495 7.8%
Total (tons) 522,654 -6.5% 3.1% 2,432,768 -0.2%
Source: The Company
Container, general, and oil cargoes
Ton 1Q24 % QoQ % YoY 2023 % YoY
Container 522,654 -6.54% 3.08% 2,432,768 -0.18%
General 276,023 5.7% 20.4% 930,298 17.8%
Oil &gas 222,883 28.2% 1.6% 783,901 -4.1%
Total 1,021,560 2.8% 6.9% 4,146,967 2.5%
 
Breakdown of revenue
Source of revenue 1Q24 % QoQ % YoY 2023 % YoY
Stevedoring 14,561 -0.4% 18.6% 61,998 -5.4%
LOLO 10,791 -4.0% 7.9% 49,004 -5.6%
Port services 5,324 -3.6% 13.3% 19,822 12.0%
Storage 169 -61.6% -68.1% 2,042 -49.9%
Others 2,003 24.3% -38.4% 9,169 -4.6%
Total 32,848 -1.8% 6.8% 142,035 -4.6%
 
Financial Ratios
FY end to Dec 2020 2021 2022 2023
Per share ratios
EPS (KHR) 1,944 2,499 2,867 1,866
BPS (KHR) 31,529 34,129 37,211 38,520
BPS* (KHR, excluding Class C) 13,396 15,995 19,078 20,387
EBITDA/Shr (KHR) 3,245 3,974 4,596 3,586
SPS (KHR) 5,333 6,054 7,195 6,867
DPS (KHR, of Class A) 333 334 334 334
Share Price 11,700 14,700 14,900 14,000
Valuation ratios
P/E (x) 6.02 5.88 5.20 7.50
P/B (x) 0.37 0.43 0.40 0.36
P/B*(x, excluding Class C) 0.87 0.92 0.78 0.69
EV/EBITDA (x) 3.91 4.31 3.74 4.61
P/S (x) 2.19 2.43 2.07 2.04
Dividend yield on end-period close (%, of Class A) 2.84 2.27 2.24 2.38
Dividend yield on current price (%, of Class A) 2.42 2.42 2.42 2.42
Dividend yield on IPO price (%, of Class A) 6.50 6.52 6.52 6.52
Dividend payout (%, of Class A)** 17.12 13.36 11.64 17.88
Dividend payout (%) 10.26 7.98 5.52 8.24
Profitability ratios
EBITDA margin (%) 60.86 65.64 63.88 52.22
EBIT (%) 50.70 54.75 53.21 38.93
Net margin (%) 37.26 41.21 45.80 22.34
ROE (%) 6.47 7.60 9.24 4.05
ROE* (%, excluding Class C) 15.78 16.98 18.79 7.77
ROA (%) 4.97 5.95 7.14 3.09
Efficiency ratios
Asset turnover (x) 0.13 0.14 0.16 0.14
Receivables turnover (x) 7.34 9.01 9.42 7.69
Financial strength
Total Debt/ Total Equity (%) 14.12 12.12 10.11 8.61
Net debt/equity (%) 3.15 7.13 6.21 6.62
Interest coverage (x) 12.55 14.75 18.13 10.68
Inter & ST debt cover (x) 4.36 4.79 5.65 3.78
Current ratio (x) 3.86 1.88 1.85 1.44
Quick ratio (x) 3.86 1.79 1.70 1.30
Net debt/EBITDA (x) 0.31 0.61 0.50 0.71
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;
6/24/2024
Closing price KHR 12,900
IPO price KHR 5,120
 
Stock Info
Industry Transport Support Services
Market cap (KHRbn) 267
Outstanding shares (mn) 20.7
Majority shareholder  
Ministry of Economy & Fin (%) 80
Avg daily vol. (last 6 months, shr) 390
Free floating shares (last 6 months, %) 3.75
Price low/high (last 6 months, KHR) 12,380 ~ 14,140
EPS (KHR) (ttm) 1,795
P/E (x) (ttm) 7.36
P/B (x) (mrq) 0.35
P/B* (x) (mrq) 0.66
EV/EBITDA (x) (ttm) 4.41
D/E (%) (mrq) 10.87
Note: ttm = trailing twelve months (Mar-2023 to Mar-2024); mrq = most recent quarter (1Q24); *Excluding equity of Class C (non-voting) shares
Stock Performance
 
Trading Volume & Value in Last 12 Months
Month-Year Monthly trading Average per day
  Volume (shr) Value (KHR'mn) Volume (shr) Value (KHR'mn)
May-24 13,058 172 653 9
Apr-24 5,921 75 296 4
Mar-24 11,496 152 575 8
Feb-24 3,421 48 163 2
Jan-24 4,841 67 220 3
Dec-23 4,012 55 191 3
Nov-23 4,283 59 225 3
Oct-23 3,263 45 155 2
Sep-23 4,242 59 202 3
Aug-23 3,626 51 158 2
Jul-23 9,871 139 494 7
Jun-23 5,374 77 244 3
 
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 bn) 2020 2021 2022 2023 1Q24
Revenues 110.3 125.2 148.8 142.0 32.8
Operating costs -47.6 -50.6 -64.3 -67.5 -20.1
Other income 4.4 7.6 10.6 -0.4 1.3
EBITDA 67.1 82.2 95.1 74.2 14.1
Depreciation & Amortization -11.2 -13.6 -15.9 -18.9 -5.2
EBIT 55.9 68.6 79.2 55.3 8.9
Finance costs -4.5 -4.6 -4.4 -5.2 0.1
PBT 51.5 63.9 74.8 50.1 9.0
Income tax expense -11.3 -12.2 -15.5 -11.5 -2.8
Net profit of period 40.2 51.7 59.3 38.6 6.2
Re-measurements of defined benefit liability 0.9 -0.1 8.9 -6.9 -8.6
Comprehensive income 41.1 51.6 68.2 31.7 -2.4
Comprehensive income
Statement of financial position
FY to Dec (KHR'mn) 2020 2021 2022 2023 1Q24
Non-current assets 721.4 843.2 943.0 991.2 988.3
Properties, plants & equipment 359.3 411.1 464.8 517.4 519.7
Investment properties 342.6 354.7 356.8 356.9 352.9
Other non-current assets 19.5 77.5 121.5 117.0 115.7
Current assets 115.0 55.9 67.9 49.6 43.3
Trade receivables 43.4 18.0 32.2 28.7 28.4
Cash & cash equivalent 71.6 37.9 35.7 21.0 9.6
Total assets 836.3 899.1 1,010.9 1,040.9 1,031.6
Non-current liabilities 154.4 163.4 204.5 209.8 202.3
Long-term debts 83.7 75.9 68.2 59.2 54.4
Other non-current liabilities 70.7 87.5 136.3 150.6 147.9
Current liabilities 29.7 29.8 36.7 34.4 39.7
Trade & other payables 12.4 8.5 11.4 12.3 25.3
Other current liabilities 17.4 21.3 25.3 22.0 14.3
Total liabilities 184.2 193.2 241.2 244.1 241.9
Shareholders' equity 652.2 705.9 769.7 796.8 789.7
Share capital 457.8 457.8 457.8 457.8 457.8
Reserves 147.8 186.8 234.0 287.8 321.7
Development fund 0.0 0.0 0.0 0.0 0.0
Retained earnings 41.1 51.9 60.6 40.1 7.7
Other capital 5.4 9.4 17.2 11.0 2.4
Total liabilities & equity 836.3 899.1 1,010.9 1,040.9 1,031.6
 
Statement of cash flows
FY to Dec (KHR'mn) 2020 2021 2022 2023 1Q24
Operating cash flow 39.9 89.7 60.7 60.3 11.9
Net profit 40.2 51.7 74.8 50.1 9.0
Depreciation & amortization 11.2 13.6 15.9 18.9 5.2
Chg in working capital 0.0 0.0 0.0 0.0 6.4
Others -11.5 24.4 -30.0 -8.7 -8.7
Investing cash flow -51.7 -57.3 -52.0 -52.2 -11.7
Net CAPEX -57.6 -72.0 -31.0 -61.4 -12.9
Others 6.0 14.6 -21.0 9.2 1.2
Financing cash flow -17.2 -16.7 -18.8 -17.5 -6.4
Net chg in share capital 0.0 0.0 0.0 0.0 0.0
Net chg in debt 0.0 0.0 0.0 0.0 -6.4
Cash dividend -4.1 -4.1 -4.4 -4.7 0.0
Net change in cash & equivalent -29.0 15.7 -10.0 -9.4 -6.2
Beginning cash & equivalent 39.6 10.9 35.2 25.5 15.9
Ending cash & equivalent 10.9 26.7 25.5 15.9 9.6
 

 

© Copyright 2022 Yuanta Securities (Cambodia) Plc. All Right Reserved
{linkvaow88.bet link vao w88}|