KUALA LUMPUR: HwangDBS Vickers Research has maintained a hold on PPB GROUP BHD [], with a raised target price to RM17.50 (from RM17.15 previously) after the latter posted 4Q09 results that were in line with expectations.
PPB posted 4Q09 net profit of RM351 million, bringing FY09 net profit to RM1.6 billion, up 26% year-on-year.
PPB declared a final single tier 18 sen dividend per share (DPS), bringing FY09 dividend to 73 sen (including 50 sen special and 5 sen interim DPS).
"We do not expect another special dividend," HwangDBS said in a report on March 3.
It said 4Q09 revenue and EBIT fell 6% and 44% quarter-on-quarter (q-o-q), respectively, due to weaker contributions from both sugar and flour, while associate profits — from 18.4% stake in Wilmar — fell 42% q-o-q to RM258 million as 3Q09 included a one-off US$167 million gain in Wilmar’s books.
The sale of its sugar business was completed in January and PPB will realise a one-off RM857 million gain in 1Q10.
"Reiterate Hold on PPB. We prefer Wilmar (buy, target price S$8.00) because it is a more liquid and direct proxy to growing opportunities in China," HwangDBS said.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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