PPB Group Berhad

Date announced 25/08/2010
Quarter 30/06/2010 Qtr 2
FYE 31/12/2010

STOCK PPB
C0DE  4065 

Price $ 18.5 Curr. PE (ttm-Eps) 9.18 Curr. DY 3.95%
LFY Div 73.00 DPO ratio 54%
ROE 16.9% PBT Margin 56.1% PAT Margin 54.7%

Rec. qRev 581092 q-q % chg 15% y-y% chq -30%
Rec qPbt 325903 q-q % chg 8% y-y% chq -25%
Rec. qEps 26.80 q-q % chg -72% y-y% chq -20%
ttm-Eps 201.58 q-q % chg -3% y-y% chq 93%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 10.00 Avg. L PE 7.00
Forecast High Pr 25.73 Forecast Low Pr 15.68 Recent Severe Low Pr 15.68
Current price is at Middle 1/3 of valuation zone.

RISK: Upside 72% Downside 28%
One Year Appreciation Potential 8% Avg. yield 7%
Avg. Total Annual Potential Return (over next 5 years) 15%
CPE/SPE 1.08 P/NTA 1.55 NTA 11.93 SPE 8.50 Rational Pr 17.13



Decision:
Already Owned: Buy Hold Sell Filed; Review (future acq): Filed; Discard: Filed
Guide: Valuation zones Lower 1/3 Buy; Mid. 1/3 Maybe; Upper 1/3 Sell

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr