Ppb Group Berhad

$PPB / 4065 (PPB GROUP BERHAD)
Research Report by KENANGA

$PPB / 4065 (PPB GROUP BERHAD)
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

$PPB / 4065 (PPB GROUP BERHAD)
Research by MIDF
Neutral - TP RM14.47

"2QFY24 Results: Below Expectation"

• Core business posted mixed results
• Wilmar recorded mixed performance
• Earnings forecast; downgrade
• Maintain NEUTRAL with a revised TP of RM14.47

Analyst:
MIDF Research Team
research@midf.com.my

$PPB / 4065 (PPB GROUP BERHAD)
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

PLANTATION
$TSH / 9059 (TSH RESOURCES BERHAD) $UMCCA / 2593 (UNITED MALACCA BERHAD) $PPB / 4065 (PPB GROUP BERHAD)
Research by Kenanga
Neutral

“Inventory Pick-up On Weak Exports”

MPOB-reported palm oil production of 1.615m MT (-5% MoM, +12% YoY) for June 2024 was a tad above the 10-year average level, and within market estimate but 6% poorer than Kenanga’s estimate. However, poorer exports of 1.205m MT came in slightly (3%) below market and 13% lower than our expectation which led to higher QoQ and YoY closing inventory.

Analyst(s):
Teh Kian Yeong
tehky@kenanga.com.my

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Adhesive maker Techbond Group Bhd, which saw the emergence of PPB Group Bhd as its substantial shareholder last Friday, rallied by as much as 30% to 56.5 sen in the morning trading session yesterday.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

$PPB / 4065 (PPB GROUP BERHAD)
Research by Kenanga
Outperform – TP of MYR 17.50

“Acquires 15% Stake in Techbond”

PPB has acquired a 15% stake in TECHBND (OP; TP: RM0.50) for RM38m cash, having sold its adhesive unit Malayan Adhesives and Chemicals Sdn Bhd (MAC) to TECHBND in Feb 2023. The earnings impact of the deal to PPB is negligible. We see the deal as more of a vote of confidence from PPB to TECHBND. We maintain our forecasts, TP of RM17.50 and our OUTPERFORM call.

Analyst(s):
Teh Kian Yeong
tehky@kenanga.com.my

PPB Group Bhd has emerged as a substantial shareholder in industrial adhesives and sealant developing and manufacturing company, Techbond Group Bhd, after buying a 15% stake in the group for RM37.67mil.

KUALA LUMPUR: PPB Group Bhd has emerged as a substantial shareholder in Techbond Group Bhd following the acquisition of a 15 per cent-stake in the company from its managing director Lee Seng Thye’s company Sonicbond Sdn Bhd.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: PPB Group Bhd has emerged as a substantial shareholder in Techbond Group Bhd following the acquisition of a 15%-stake from Sonicbond Sdn Bhd.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

OTHERSPPB GROUP BERHAD ("PPB")
- ANNOUCEMENT PURSUANT TO PARAGRAPH 9.19(25) OF THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

PLANTATION
$PPB / 4065 (PPB GROUP BERHAD) $TSH / 9059 (TSH RESOURCES BERHAD) $UMCCA / 2593 (UNITED MALACCA BERHAD)
Research by Kenanga
Neutral

“1QCY24 Results Review: A Patience Game”

1QCY24 plantation sector earnings were muted. Downstream continued to disappoint which dampened earnings of all three big integrated players, SDG (formerly SIMEPLT), IOI, and KLK. Upstream earnings held better on easier costs and firm CPO prices: thus, smaller, more upstreamcentric players fared better. Meanwhile, SDG’s solar farming plans highlight a lucrative alternative land use for the sector but limited sector-wide impact is expected as many planters are likely to stay oil palm-centric. Maintain NEUTRAL. PBV of 1.1x is not demanding but there is no strong upside catalyst. Higher CPO would be such a catalyst but supply-demand scenario suggests firm rather than bullish CPO prices ahead. We continue to prefer players with the ability and/or flexibility to grow such as PPB (OP; TP: RM17.50), TSH (OP; TP: RM1.30), and UMCCA (OP; RM6.00).

Analyst(s):
Teh Kian Yeong
tehky@kenanga.com.my