PPB Net Profit May be Hurt by Wilmar International's Potential Penalty Costs -- Market Talk

Dow Jones
2025/09/04

0211 GMT - PPB Group's net profit may fall by MYR580 million with its associate Wilmar International facing a potential $729 million penalty relating to a corruption charge in Indonesia, says Kenanga IB analyst Khoo Teng Chuan says in a note. If the impact falls in 2025, net profit would decline to MYR837 million from MYR1.39 billion, he reckons. However, core net profit may grow 20% on year, supported by PPB's end-June net cash of MYR1.3 billion. Earnings recovery looks within reach in 2025-2026 as PPB benefits from stronger momentum in its grain and agribusiness, consumer products, and cinema segments, aided by new product launches and government support, he adds. Kenanga raises PPB's target price to MYR10.50 from MYR10.00 and maintains an outperform rating. Shares are 2.9% higher at MYR9.67. (yingxian.wong@wsj.com)

 

(END) Dow Jones Newswires

September 03, 2025 22:11 ET (02:11 GMT)

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