Pearl River opens new facility in Cambodia

Published 19/03/2025, 22:38
Pearl River opens new facility in Cambodia

PHNOM PENH - Pearl River Holdings Limited (TSXV: PRH), with annual revenues of $70.41 billion and impressive revenue growth of 30.43% over the last twelve months, has announced the opening of its new manufacturing facility near Phnom Penh, Cambodia, which is now fully operational. This development follows the company’s previous announcement on July 24, 2024, regarding its plans to establish a production site outside of China.

The new facility is expected to primarily manufacture plastic coolers and other plastic products, catering to customer demands for production diversification. Pearl River’s subsidiary in Cambodia, which is 65% owned by Pearl River and 35% by a local partner with Cambodian business experience, has secured all necessary approvals from the Cambodian government to commence operations. According to InvestingPro data, the company maintains a healthy current ratio of 1.15, indicating solid operational liquidity for this expansion.

Pearl River’s core business through its subsidiaries includes the manufacturing and distribution of plastic products across China, Australia, and the United States. The decision to expand operations into Cambodia aligns with the company’s strategy to meet the growing market need for manufacturing capabilities outside of China.

The establishment of the Cambodian facility represents a significant step for Pearl River as it seeks to leverage the advantages of operating in different geographical locations. With an overall financial health score of "FAIR" from InvestingPro, the company appears well-positioned for this expansion. While the company expresses optimism about the new facility’s potential, it also acknowledges the various risks and uncertainties that could impact the success of this venture, including geopolitical risks, market conditions, and operational challenges. The company’s beta of 1.26 suggests moderately higher market sensitivity than average.

Investors are cautioned to consider the forward-looking nature of statements regarding the facility’s production capabilities and the potential benefits to Pearl River. The company emphasizes that actual results and future events could differ materially from current expectations.

This news is based on a press release statement from Pearl River Holdings Limited.

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