[%iYkd%]
Research by Kenanga
Outperform - RM17.50

"Soft 1H Likely For PPB Due to Wilmar"

PPB is expected to report softer 1HFY24 earnings following disappointing 1HFY24 results from 19% associate, Wilmar International Limited (WIL). An expected improvement in 2QFY24 after a soft 1QFY24 by WIL (affected by commodity trades) failed to materialise. While a significant 2H turnaround cannot be dismissed as happened last year, we lower our FY24F core EPS by 10% to reflect a weaker 1HFY24 but maintain FY25 earnings as its fundamental outlook is unchanged. Our FY25F-based TP of RM17.50 and OUTPERFORM call are maintained.

Analyst:
Khoo Teng Chuan 
[%TAJo%]

$KLSE-PPB
Research by Kenanga
Outperform - RM17.50

"Soft 1H Likely For PPB Due to Wilmar"

PPB is expected to report softer 1HFY24 earnings following disappointing 1HFY24 results from 19% associate, Wilmar International Limited (WIL). An expected improvement in 2QFY24 after a soft 1QFY24 by WIL (affected by commodity trades) failed to materialise. While a significant 2H turnaround cannot be dismissed as happened last year, we lower our FY24F core EPS by 10% to reflect a weaker 1HFY24 but maintain FY25 earnings as its fundamental outlook is unchanged. Our FY25F-based TP of RM17.50 and OUTPERFORM call are maintained.

Analyst:
Khoo Teng Chuan 
khootc@kenanga.com.my