Risk factor
Negligible price volatility
Profitability factor
Solid dividends
About
PPB Group Berhad operates as a global investment holding company, primarily focusing its operations across several key segments: Grains and Agribusiness, Consumer Products, Film Exhibition and Distribution, Property, and a diverse range of Other Operations. In its agribusiness sector, the company is deeply involved in flour milling, manufacturing animal feed, trading wheat and maize, managing oil palm plantations, and producing day-old chicks and eggs, along with other related downstream poultry activities. The consumer products division handles the marketing and distribution of edible oils and various consumer goods, in addition to manufacturing and distributing frozen and baked products. Its film segment is dedicated to exhibiting and distributing movies and various forms of content. The property arm of PPB Group leases commercial properties and undertakes the development of both residential and commercial projects. Complementing these activities, the company also engages in manufacturing and processing nuggets, sausages, and burgers, as well as producing and trading chemicals. A wide array of other operations and services are provided, including management, transportation management, consultancy, corporate secretarial, share registration, and nominee services, alongside project management and information technology services. The group's manufacturing interests further extend to adhesives, resins, additives, formaldehyde, and phenoset microspheres, while also trading in contact glue. Other ventures encompass poultry farming and breeding, the production of organic fertilizers, operating cafes, wholesaling industrial and construction machinery and equipment, serving as an advertising contractor and consultant, and selling merchandise goods. Established in 1968 and headquartered in Kuala Lumpur, Malaysia, the company was formerly known as Perlis Plantations Berhad before adopting its current name, PPB Group Berhad, in 2000. It functions as a subsidiary of Kuok Brothers Sdn Berhad.
Company Valuation
Based on key historical and expected multiples, the stock is slightly overvalued relative to its peers. In particular, the stock is underpriced on P/E, 'expensive' on EV/
Target Price
The average target price of 4065.KL is 12 and suggests 21.1% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to inc