PPB Group Berhad

Date announced 22/11/2010
Quarter 30/09/2010 Qtr 3 FYE 31/12/2010

STOCK PPB C0DE  4065 

Price $ 18.8 Curr. PE (ttm-Eps) 10.70 Curr. DY 3.88%
LFY Div 73.00 DPO ratio 54%
ROE 15.9% PBT Margin 55.2% PAT Margin 50.1%

Rec. qRev 574531 q-q % chg -1% y-y% chq -38%
Rec qPbt 317086 q-q % chg -3% y-y% chq -51%
Rec. qEps 24.29 q-q % chg -9% y-y% chq -52%
ttm-Eps 175.67 q-q % chg -13% y-y% chq 28%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 10.00 Avg. L PE 7.00
Forecast High Pr 22.42 Forecast Low Pr 16.00 Recent Severe Low Pr 16.00
Current price is at Middle 1/3 of valuation zone.

RISK: Upside 56% Downside 44%
One Year Appreciation Potential 4% Avg. yield 6%
Avg. Total Annual Potential Return (over next 5 years) 10%

CPE/SPE 1.26 P/NTA 1.70 NTA 11.03 SPE 8.50 Rational Pr 14.93



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