Good Articles to Share
Can PPB Benefit from MCO? - ivkls
Thursday, 9 April 2020
While Malaysians are obeying Movement Control Order (MCO) at home to fight against the pandemic (Convid – 19), many companies affected from MCO. Would PPB Gourp Berhad (PPB) benefit from this MCO?
Company Profile
PPB operation separated into 7 operation segment which are:
i) Grain & Agribusiness
ii) Consumer Products
iii) Film Exhibition and Distribution
iv) Environmental Engineering and Utilities
v) Property
vi) Investment in Equities
vii) Other Operation
i) Grain & Agribusiness
|
External Sales (2018) :
|
RM 2,992,121,000 (66.07 %)
|
|
Segment results (2018) :
|
RM 125,952,000
|
|
Operational Margin (2018) :
|
4.21 %
|
|
Operation Segment :
|
a) Flour milling and manufacturing animal feed
b) Wheat and maize trading
c) Production of day-old chicks
d) Egg and other related downstream activities
e) Oil Palm Plantation
|
|
Product :
|
a) Flour :
Anchor, Blue Key, Muhibah
b) Eggs:
Sri Murni
|
ii) Consumer Products
|
External Sales (2018) :
|
RM 637,721,000 (14.08 %)
|
|
Segment results (2018) :
|
RM 15,177,000
|
|
Operational Margin (2018) :
|
2.38 %
|
|
Operation Segment :
|
a) Marketing and distribution of edible oils and consumer products
b) Production and distribution of frozen food and bakery products
c) Manufacturing of toilet requisites and household product
|
|
Product :
|
a) Bread:
Massimo
b) Edible oil:
Neptune, Krystal
c) Frozen and can food:
Marina
d) Margarine
Blue Team
|
iii) Film Exhibition and Distribution
|
External Sales (2018) :
|
RM 538,352,000 (11.89 %)
|
|
Segment results (2018) :
|
RM 63,394,000
|
|
Operational Margin (2018) :
|
11.78 %
|
|
Operation Segment :
|
Exhibition and distribution of movies and content
|
|
Product :
|
Golden Screen Cinema
|
iv) Environment Engineering and Utilities
|
External Sales (2018) :
|
RM 204,589,000 (4.52 %)
|
|
Segment results (2018) :
|
RM 14,861,000
|
|
Operational Margin (2018) :
|
7.26 %
|
|
Operation Segment :
|
a) Construction works specialising in water and environmental industries
b) Provision of waste management services
|
|
Products :
|
a) CWM Group Sdn Bhd
b) Sitamas Enviromental Systems Sdn Bhd
|
v) Property
|
External Sales (2018) :
|
RM 51,395,000 (1.13 %)
|
|
Segment results (2018) :
|
RM 12,251,000
|
|
Operational Margin (2018) :
|
23.83 %
|
|
Operation Segment :
|
a) Letting of commercial properties
b) Development of residential and commercial properties
|
|
Products :
|
a) Taman Segar
b) Cheras Leisure Mall
c) Cheras Plaza
d) Masera Bukit Segar
e) Southern Marina Residences
f) Megah Rise
g) The Linc
h) Pnderosa Woods
i) New World Park
j) The Whiteways Arcade
k) Taman Sinar Mentari
|
v) Investment in Equities and Other Operation
|
External Sales (2018) :
|
RM 104,082,000 (2.23 %)
|
|
Segment results (2018) :
|
RM 14,824,000
|
|
Operational Margin (2018) :
|
14.24 %
|
|
Operation Segment :
|
a) Investment in quote and unquoted shares
b) Chemical Trading and manufacturing
c) Investment holding
d) Packaging
|
|
Products :
|
a) Wood Adhesives
b) Formalin
c) Paper Chemicals
d) Phenoset® Microspheres
e) Phenolic Resins
|
Operation Benefit from MCO
From the above operating segments that might able benefit from MCO are Grain & Agribusiness and Consumer Products. Both operating segments had a combined revenue of RM 3,629,842 which representing 80.16 % of PPB 2018 revenue.
During MCO Malaysian would start to stock up frozen food, can food and eggs as this food have long shelf life besides that there would be more cooking at home hence increase of demand of ediable oil. These are the product of consumer products segment.
With many more Malaysian staying at home, starting of home base activities like cooking and baking would increase the demand of flours and eggs which would benific the Grain & Agribusiness segment.
Although MCO most likely to affect the Film & Distribution and Properties segment. It does not affect PPB much because this segments only stand 5.65% of 2018 revenue.
Sustainability of PPB through Pandemic
From 2018 annual report PPB has RM 23,244,633,000 of asset compare to RM 1,507,792,000 of liability. This make PPB debt ratio to 0.065.
Besides that the financial cost for 2018 is RM 33,893,000 and operating income (EBIT) is RM 1,201,576,000.Hence the interest coverage ratio of PPB is 35.45.
Low debt ratio and high interest coverage ratio make PPB most likely to survive through this pandemic.
Conclusion
In conclusion PPB is a company worth to research at during the MCO and stock market selldown.
http://ivkls.blogspot.com/2020/04/can-ppb-benefit-from-mco.html
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on Good Articles to Share
India medical staff say they feel unsafe after rape and murder | REUTERS
Created by Tan KW | Aug 17, 2024
Biden tells reporters that Kamala won’t distance herself from their economic record #shorts
Created by Tan KW | Aug 17, 2024
Discussions
Be the first to like this. Showing 1 of 1 comments
Post a Comment
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
.png)
.png)
MQ Trading Signals
Time
Signal
Duration
Type
2024-08-16 16:55:00
EMA 5
5 Mins
BUY
2024-08-16 16:25:00
EMA 5
5 Mins
SELL
2024-08-16 16:25:00
MACD/RSI
5 Mins
SELL
2024-08-16 16:20:00
EMA 5
10 Mins
SELL
2024-08-16 16:05:00
EMA 5
5 Mins
BUY
Apps
Top Articles
1
2
save malaysia!
3
save malaysia!
4
5
Good Articles to Share
6
Good Articles to Share
7
The Alpha Trader
KINERGY ADVANCEMENT BERHAD) (0193) - A CAPITULATION TRADE SETUP
8
TA Sector Research
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
RainT
Wilmar is the main determinant of PPB profit
2020-05-09 12:10