[%AvWY%]
Research by Kenanga
Outperform - TP RM17.50

"Soft 1H But Fundamentals Are Intact"

PPB’s 1HFY24 results were within market, but below Kenanga’s, expectation. Good milling and feed margins were dampened by weak recovery in the consumer food products and cinema operations. However, a better 2H is still likely coming from PPB’s own operation as well as from associate, Wilmar International Limited (WIL) as consumer spending on food and entertainment is set to grow. Nonetheless to reflect YTD softness, FY24 core net profit is trimmed by 8% but FY25-driven TP of RM17.50 is maintained along with our OUTPERFORM call as long-term fundamentals are intact.

Analyst:
Khoo Teng Chuan 
[%ysWl%]

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

"Soft 1H But Fundamentals Are Intact"

PPB’s 1HFY24 results were within market, but below Kenanga’s, expectation. Good milling and feed margins were dampened by weak recovery in the consumer food products and cinema operations. However, a better 2H is still likely coming from PPB’s own operation as well as from associate, Wilmar International Limited (WIL) as consumer spending on food and entertainment is set to grow. Nonetheless to reflect YTD softness, FY24 core net profit is trimmed by 8% but FY25-driven TP of RM17.50 is maintained along with our OUTPERFORM call as long-term fundamentals are intact.

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