PPB expects “good” 2013 results, seen paying higher final dividend

From The Edge Malaysia

27th Aug 2013

KUALA LUMPUR (Aug 27): PPB Group Bhd said today it expects to achieve “good” results for its full financial year in 2013, supported by domestic demand and flour milling expansion overseas.

It also expects profit contribution from its 18.33%-associate company, Wilmar International Ltd of Singapore, to continue to account for 65%-70% of PPB’s total profit.

“On the whole, PPB Group’s operations are expected to perform well in 2013; nonetheless the overall financial results would depend substantially on Wilmar’s business performance for the year,” said Leong Choy Ying, chief financial officer of PPB Group, at a briefing for the media and analysts today.

“The domestic demand in Malaysia is expected to be well-supported by resilient consumer and business spending… Regionally, expansion of the group’s flour milling capacity in Indonesia and Vietnam is progressively coming on-stream to supply additional volume in those markets,” she added.

PPB on RM592mil expansion drive

By Star Online: Business
8th March 2013

Bulk of the money to go to grains trading, flour and feed milling segment

The group also intends t o invest in three new cinemas with a total of 28 new screens this year

KUALA LUMPUR: PPB Group Bhd has committed to spending up to RM592mil over the next two to three years to expand its businesses, which include grains trading, flour and feed milling, property investment and development, waste management and utilities, as well as film exhibition and distribution.

PPB Group - Sustained pace of earnings recovery

By Kenanga Research
28th Feb 2013


OUTPERFORM ↔
Price: RM12.22
Target Price: RM15.00 ↑

Plantation stocks have been battered-down, is it a good time to buy now?

By Star Online: Business
25th Jan 2013

PETALING JAYA: Having been battered down since last September, is it a good time for investors to buy into plantation stocks?

Over the last 12 months, the plantation index of Bursa Malaysia has underperformed the benchmark FTSE Bursa Malaysia KL Composite Index (FBM KLCI) significantly. To-date, the plantation index is some 15% below the FBM KLCI.

This is not surprising, considering that the third-month contract of crude palm oil (CPO) prices have been taking a beating since September, dipping 19.26% to around RM2,481 per tonne on Jan 23.

The CPO price decline is basically due to higher inventories and weaker demand.

PPB - Personal Analysis 3-11-12

Personal Technical Analysis
3 November 2012

Since a major sell down in PPB in late-July from around RM15.20 to find support at RM13.90 which was then violated in early-September and price has bottomed out at around RM11.90 (14+% from RM13.90 - within Cup with Handle rule of 1/3) then in the duration of mid-Sep to mid-Oct. The stock has recover to reach a peak at RM13.90 in late-October and pulled back.

There is indeed a clear chart pattern that technical analysis called "Cup with Handle" in which it starts with a bowl-like-U-shaped movement from selling down to bottoming out and rising again to formed a U shape, and is then followed by a sell-down again to form a handle.

The stock price of PPB is clearly showing this chart pattern albeit under a different situation - traditional Cup with Handle is formed with a prior rising trend while in this case PPB is facing a mid-term downtrend, but I look into it that PPB it staging a rebound that in one way or another can be considered as starting a rising trend.

If the handle did formed eventually with a rising trend again, RM13.90 would be the critical point of resistance, if it is broken then Cup with Handle pattern is proven and the price will continue for more upside.

MACD is still bullish as MACD is still above both center-line and signal-line.
RSI is slightly bearish as it is pulling back from overbought level (70).
Slow Stochastic Indicator is slightly bearish as it is pulling back from overbought level (80) too.

Critical Resistance: RM13.90

PPB Group - Massimo bread rolling out nationwide steadily HOLD

By Am Research
20 Apr 2012

- Maintain HOLD on PPB Group Bhd, with an unchanged fair value of RM17.45/share, which is based on a PE of 19.5x on FY12F EPS. 

- In the past five years, PPB’s historical PE band ranged from a low of 19.0x to a high 22.1x. Average PE was 20.6x. PPB’s 18%-owned associate, Wilmar International, is currently trading at 15x FY12F fully diluted EPS and 13.5x FY13F fully diluted EPS.

- We visited PPB’s Massimo bread factory yesterday. We found the plant to be clean and modern. Most of the processes are automated and the only labour-intensive segment is the packing section. 

- The bread factory cost RM120mil to build. We reckon that the bulk of the cost was attributed to the heavy machinery and equipment, some of which were brought in from the US. 

- There are no plans yet to increase the selling price of Massimo’s wheat germ bread. We reckon that PPB’s strategy is to improve its market share first even though it may result in the erosion of operating margins. The selling price of Massimo wheat germ is RM2.50 for a 400gm loaf. This is just 10 sen more expensive than the white bread.

- PPB has started selling Massimo bread to other markets such as Ipoh, Penang, Malacca and Seremban. This would allow the group to expand its market penetration beyond the Klang Valley. 

- The group also plans to increase the number of its products. Currently, PPB sells the wheat germ loaf, white bread loaf and cream rolls. There are two types of single cream rolls and two types of double cream rolls. 

- We understand that consumers have responded well to PPB’s bread products. Word of mouth has been instrumental in the acceptance of the bread. PPB has also advertised in newspapers and television to promote the bread.  

- There is no expansion plan yet. Presently, the bread factory has the capacity to produce 10,000 loaves per hour and 24,000 cream rolls every hour. The bread factory encompasses an area of 22,000 sq metres, which is the size of two football fields.  

Price- RM16.72 

Fair Value- RM17.45

[Source]