For the bread manufacturing industry, PPB group distribution network is sort of left behind compared to Gardenia. Take into the example of Sabah where there is local bread manufacturer by BTC, Gardenia's bread is still able to survive and its coverage is wide be it the rural or urban areas. The moderate distribution network can also be reflected through its frozen products where it is only found in certain urban areas where foreign products are also brought in making the competition more crowded. Golden Screen Cinemas are also cornered in a five ways battle with so much theatre operators already in Malaysia. Consumers are able to choose which cinemas to go to despite of having the same movie. Therefore, a lot of marketing expenses and collaborations are needed to attract the respective markets.
Obviously, the operating cash flow for PPB Group is sliding down from years to years. With extensive expansions for the several years, failing to boost up and even maintain the cash from below reflects that the business is not generating enough cash altogether. Thus, it is not a desirable picking.
STOCK: PPB CODE: 4065