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Land sales spur revenue increase for PPSP in Q2

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Phnom Penh Special Economic Zone. Supplied

Land sales spur revenue increase for PPSP in Q2

Public-listed Royal Group Phnom Penh Special Economic Zone (PPSP) reported a significant growth in business performance in the second quarter of 2023 amid regional and global economic uncertainties.

In a filing with Cambodia Securities Exchange on Aug 22, Kith Meng, non-executive chairman of PPSP, said the company reported total revenue of 29.7 billion riel ($7.14 million), which was an increase of 95 per cent compared to 15.2 billion riel in the second quarter of 2022.

The company made a net profit of 2.5 billion riel in the second quarter of 2023 compared to a net loss of 515 million riel in the same quarter of 2022.

“The financial position of the company remains strong as at 30 June 2023 with total assets amounting more than 527.5 billion riel, comprising non-current assets of 210.1 billion riel and current assets of 317 billion riel,” Kith Meng said.

Total equity rose 10.5 per cent to 281.6 billion riel as of June 30, 2023 from 254.8 billion riel last year. As a result, debt-to-equity ratio stood at 0.87 in 2023 compared with 0.85 in 2022.

According to Uematsu Hiroshi, director of PPSP, the economic zone is currently operating in the proximity of the capital city of Cambodia, Phnom Penh.

As at 30 June 2023, the PPSEZ is one among 17 operating SEZs (from a total of 36 approved SEZs) in Cambodia.

“Royal Group Phnom Penh Special Economic Zone is a leader in terms of the number of investors and total investment amount, and total workers among SEZs in Cambodia. It is one of the largest SEZs in Cambodia by land size, measuring approximately 357.3 hectares,” he said.

This year, the company established three new subsidiaries/associates including Royal Group Phnom Penh Special Economic Zone II Co Ltd for new SEZ development, Sahas Properties Co Ltd as the company’s property development flagship and Gomi Recycle (Phnom Penh) Co Ltd, which is partnering with a Japanese company for solid waste management, Uematsu said.

Between 2012 and 2023, income generated from the sale of land is the major contributor to PPSP’s total revenue. The revenue from the sale of land depends on the number of plots sold and its size.

As of 30 June 2023, PPSP registered a total of 104 investors or tenants who are locals as well as from Japan, Singapore, Malaysia, Taiwan, Korea, Philippines, China, Vietnam, Turkey, Thailand and the US.

“We mainly target zone investors who are involved in light to medium-scale industries and are labour intensive industries. To date, we have attracted investors which sell their products locally and export overseas.

“They are involved in mechanical and electrical products, garment, shoes, apparel and fashion, food processing and agricultural industries, consumer products [pharmaceutical and packaging], automobile parts, assembly of pre-produced parts to final product and logistics,” Uematsu said.


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