On Wednesday, September 12, 2018, Cambodia Securities Exchange (CSX) initiated the first time Listed Company Forum on the topic of “Potential of Sustainable Growth”. The forum was conducted at the CSX Building with around 100 participants including company management, investors and general public. The forum was attended by three honorable guest speakers, namely Mr. Ros Kimleang, Deputy Director General of Phnom Penh Water Supply Authority (PPWSA), Mrs. Chey Sokunthea, Marketing Director of Sihanoukville Autonomous Port (PAS), and Mr. Seng Chan Thoeun, Managing Director and Head of Corporate Finance of SBI Royal Securities Plc. The discussion session was honorably moderated by H.E. Hong Sok Hour, Chief Executive Officer of the CSX.
The forum was prepared with the aims to increase the public awareness and confidence of existing and potential investors to the market through the direct discussion with listed companies. Furthermore, investors will have better investment decision according to the business performance and other related information of the companies, said H.E. Hong Sok Hour.
Mrs. Chey Sokunthea did a detail presentation on the company business activities and the long-term future plan until 2023. She has also explained the country’s import and export through the port and the potential development by the growth of Cambodia’s economy and benefits of geographical advantages in the region. She added that the dividend distribution for the fiscal year 2017 was 8% of the IPO price, and we expect to distribute higher dividend when the business keeps going well. Mr. Ros Kimleang has showed the recent business performance and detail explanations on the financial report, as well as the achievements and winning medals. He added that PPWSA has been working hard to provide the clean and safe water to our citizens, and we are autonomous enterprise with high capacity of self-sustainable growth in all economic situations. Regarding the dividend distribution, the dividend distribution was around 4%, and PPWSA will keep increase the dividend yield year by year.
After the presentation of both companies, Mr. Seng Chan Thoeun has done an analysis on the business performance and the current stock prices. Compared with the business performance of the same industry of other countries in the region, the current stock price of PPWSA looks undervalued, while that of PAS seems overvalued. Using fundamental analysis, the fair value of PPWSA stock should be 5,900 KHR/share (current price is 3,250KHR/share) while that of Pas stock price should be 5,000 KHR/share (current price is 5,540KHR/share). However, PAS is willing to pay higher dividend, and it is the main return of the investment in the current Cambodia stock market.
During the discussion session, there were a lot of interesting questions. The forum ended in the most friendly environment. The forum will be organized five times per year, and quarterly forums will be held at the CSX building after the quarterly financial reports are officially published and joined by two or three listed companies. Annual forum will be taken part by all listed companies as well as other related entities in the securities sector.