KUALA LUMPUR: Kenanga Research has maintained its "outperform" rating on PPB Group Bhd with a target price of RM19.30 after the diversified conglomerate reported robust earnings and revenue for the financial year ended Dec 31, 2022 (FY2022).

PPB Group posted a net profit of RM2.20 billion and revenue of RM6.15 billion in FY2022, with all key segments recording improvement in revenue and profitability.

Kenanga Research said the FY2022 revenue surpassed pre-COVID-19 levels but margins were compressed.

Therefore, the strong FY2022 profit was due largely to the record contributions from associate Wilmar International (WIL).

However, it said with WIL's earnings expected to dip in FY2023, PPB's cash earnings per share is also expected to trend accordingly before recovering subsequently on growth momentum from PPB's non-plantation earnings as well as from better WIL's earnings in FY2024.

At 10.50 am, the company's shares inched up by six sen to RM17.56 sen, with 13,100 units traded.

 - BERNAMA