5 June 2024 - Market Update - B2B Cambodia

This is a B2B Cambodia Market Update for 5 June 2024, reviewing the Cambodia Securities Exchange (CSX) and global markets.

Watch the video in English above.

• The Cambodia Securities Exchange Index was down 1.19 points, or a half of 1 per cent, to 410.33.  This is the 6th straight session the index has closed down with the last up day being May 27th. 
• Volume on the Main Board was very light, with only 191,292 shares changing hands at a total trading value of  USD 225K. 
• It was a sea of red today on the Main Board with all stocks either in negative territory or unchanged.  Pestech (Cambodia) was the big loser of the day, dropping 60 Riel, or 2.62 per cent to 2,230 Riel per Share on light volume of 213 shares. 
• Volume Leader Royal Group Phnom Penh SEZ lost 40 Riel, or 1.76 per cent to 2,230 Riel per Share.  
• Both stocks on the Growth Board were positive with JS land rising 80 Riel per Share to 4,280 and DBD Engineering up 20 Riel per Share to 2,210. 
   
• In corporate news Airline operator Cambodia Airways filed for an initial public offering with the Securities and Exchange Commission to list on the U.S. Nasdaq Capital Market under the symbol CAKR.  The Company is offering 1.5 million Class A ordinary shares at an estimated price of $4 to $5 each.  Assuming the sale of all 1.5 million shares at $4 each, the company expects net proceeds of about $4.6 million from the offering. It plans to use the proceeds for aircraft leasing, new air routes development and working capital purposes.  
• In its F-1 Registration Statement filed with the U.S. Securities and Exchange Commission the company stated:
  We are an “emerging growth company” as defined in section 3(a) of the Securities Exchange Act of 1934 and are therefore eligible for certain exemptions from various reporting requirements.  We are and will continue to be a “controlled company” within the meaning of the Nasdaq Stock Market Rules due to the fact that Mr. Kong Hwa Ng will beneficially own more than 50 per cent of our total voting power after the offering. Shares are not entitled to dividend or other distribution of the Company’s assets, including any distribution of assets to shareholders on a winding up.
  
  The company further stated “ Cambodia Airways is the sole full-service airline based in Cambodia. We primarily operate from Phnom Penh, the country’s capital and provide commercial airline services throughout China and Southeast Asia. Our established aviation network spans a 5-hour radius that encompasses the Asia-Pacific region, and our core market currently resides in mainland China and Southeast Asia.
  
  We are a holding company incorporated in the Cayman Islands with no operations, and conduct all of our airline operations through our Operating Subsidiary, Cambodia Airways Co., Ltd. In 2023 and 2022 respectively, the Operating Subsidiary carried 151,807 and 22,636 passengers and had passenger revenue of approximately US$20.25 million and $20.39 million. For the six months ended December 31, 2023 and 2022, the Operating Subsidiary carried 142,181 and 54,356 passengers and had passenger revenue of approximately US$17.91 million and US$9.16 million, respectively. We had a net loss of approximately $28.54 million and negative cash flow from operating activities of approximately $8.81 million for the year ended June 30, 2023. For the six months ended December 31, 2023, we had a net loss of approximately $11.33 million and negative cash flow from operating activities of approximately $2.24 million. As of the date of this prospectus, we have a fleet of six aircraft, consisting of Airbus A319 and A320 series airliners. As of the date of this prospectus the average age of our Airbus A319s and Airbus A320s is 15 years and 5 years, respectively.
• In a Disclosure Press Release, Golden Tree Green Bond announced a semi-annual coupon payment on its 7 per cent bond payable on June 6th.  
   
• The Khmer Riel remains weak at 4,107 per USD on a flat USD Index of 104.33.
• As of close of business Cambodia time, Brent Crude is taking a break from its big drop of 3 per cent on Monday, unchanged at USD 77 a barrel. In a surprise move, eight OPEC+ producers laid out a plan to phase out 2.2 million barrels in production cuts starting in October, that decision has turned the market in a bearish direction.  
• Gold is up USD 4.60 an ounce to USD 2,352 an ounce. 
• Overnight the Dow was up 140.26 points to 38,711.29.  Futures currently up 46 points,   In pre-market action, Nvidia's shares were up $14.37 to 1,164.37.  The stock has risen 174 per cent over the last year, 122 per cent year to date.  The company's stock has jumped 25 per cent in the last 30 days, thanks to another earnings beat and continued dominance in AI.

Watch the 5 June 2024 market update in Khmer below: