PPB Group Shares Fall After Quarterly Earnings Miss
By Ying Xian Wong
PPB Group shares fell early Thursday, after its first-quarter earnings came in below expectations.
The Malaysian diversified conglomerate late Wednesday said its net profit was MYR377.5 million ($81.8 million), compared with MYR303.2 million a year earlier, mainly due to a turnaround for its grains and agribusiness, coupled with film exhibition and distribution segments. But its associate Wilmar International's contribution was 19% lower on year.
Quarterly revenue was 13% higher at MYR1.52 billion.
Shares fell as much as 5.7% and were last at 15.64 ringgit, down 3.8%.
MIDF Research slashed its 2023 to 2025 earnings estimates by 25%, 38% and 48%, respectively, to factor in weaker anticipated earnings by Wilmar.
Given declining wheat prices, PPB's grains and agribusiness's margin compression should be normalized, and this segment may continue to support the company's operating margin, MIDF said in a note.
MIDF cut PPB's target price to MYR19.00 from MYR24.10 but maintained a buy call on the stock.
Kenanga cut the company's 2023 and 2024 core net profit forecasts by 36% and 15%, respectively, to account for lower-than-expected first quarter earnings.
Analyst Teh Kian Yeong was still upbeat on PPB's outlook and reckoned earnings upside in other segments besides Wilmar may persist, supported by a post-Covid-19 recovery.
Kenanga maintained an outperform rating, with an unchanged target price of MYR19.30.
Write to Ying Xian Wong at yingxian.wong@wsj.com
(END) Dow Jones Newswires
May 31, 2023 22:09 ET (02:09 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
Why Immigration Has Boosted Job Gains and the Economy
-
What to Invest in During High Inflation
-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?
-
Walmart Earnings: Low Prices and Strong Digital Presence Drive Market Share Gains
-
After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?
-
Cisco Earnings: Positive Guidance and Splunk Inclusion Align With Our Long-Term Thesis
-
3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing
-
Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?
-
A Cheap Dividend Aristocrat to Buy Before It Bounces Back