PPSP Returns to the Black on Robust Land Sales in Q3

Tycoon Kith Meng’s PPSP, where he is a substantial shareholder, posted a $2.8 million net profit in the third quarter of 2022, ending September 30, after seeing losses in the corresponding quarter last year
Phnom Penh SEZ PLC (PPSP). Kiripost/Siv Channa
Phnom Penh SEZ PLC (PPSP). Kiripost/Siv Channa

Industrial estate developer and operator Phnom Penh SEZ PLC (PPSP) returned to the black with $2.8 million net profit in Q3 2022, from $19,253 net loss in the corresponding period last year.

Its filing with Cambodia Securities Exchange (CSX) showed that quarterly revenue rose more than 2.5 times to $14.8 million, compared to $5.7 million a year ago. Both net profit and revenue were largely driven by land sales, which amounted to 46.6 billion riel ($11.2 million), followed by construction revenue.

Net profit for the cumulative nine month period ended September 30, 2022 stood at $1.9 million compared to $1.9 million net loss in the same period in 2021, while revenue surged 159 percent year-on-year to $22.8 million from $8.8 million.

PPSP is 45.09 percent-owned by Inter Logistic (Cambodia) Co Ltd, a wholly-owned subsidiary of tycoon Kith Meng’s Royal Group of Companies Ltd. It acquired 100 percent of founding shareholder Lim Chhiv Ho’s shares in January this year for $16.8 million.

The company operates and manages the Royal Group Phnom Penh SEZ and Royal Group Poipet SEZ, and develops industrial land for sale and lease.

As of September 30, 2022, 12 investors from 14 countries operated within Royal Group Phnom Penh SEZ, manufacturing automobile parts, garment, food and beverage, plastic products, electronic products, and jewelry.

According to Meng, PPSP non-executive chairman, the latest figures from the Council for the Development of Cambodia states that PPSEZ has drawn 92 projects, with a total value of $562.7 million, making it the second largest SEZ in the country.

“The future of SEZs is projected to be strong, in line with strong economic growth,” he said, adding that PPSP’s total assets stood at 465.3 billion riel ($112.3 million) while total equity was 257.3 billion riel ($62.1 million), as of September 30, 2022.

“As a result, the debt-to-equity ratio was up 0.81 times in 2022 compared to 0.72 times in 2021,” he said.