News & Updates

KUALA LUMPUR: PPB Group Bhd, a Malaysian diversified conglomerate, is allocating a sum of RM831 million for capital expenditure for the next four years for its expansion plans locally and internationally across all segments.

Managing director Lim Soon Huat said the expansion plans include the addition of nine new cinemas locally and one in Cambodia for the period, as well as upgrading existing cinemas under the film exhibition and distribution segment for RM373 million.

"The group will also allocate RM401 million for the grains and agribusiness segment, which will be used for investment in China flour mills and the construction of a 500 tonnes per day flour mill in Vietnam as well as RM3 million for the property segment to continue upgrading our existing malls.

"For the consumer products segment, we are allocating RM16 million for the construction of a new production facility and purchase of plant, machinery and intangible assets, RM5 million for environmental engineering and utilities to purchase equipment and office renovation, as well as RM33 million for other segments to purchase plant and machinery," he told a media briefing here today on the company's outlook for this year.

Under the environmental engineering and utilities segment, he said the group has secured two water projects in Sarawak worth a total of RM88 million, and is currently tendering for projects in Peninsular Malaysia and Sarawak with a total value of RM350 million.

Lim said that all the tenders will be announced in stages with the latest expected to be announced in May this year.

“Going forward, the grains and agribusiness segment is expected to remain competitive on the back of a volatile commodity market and it will continue to focus on volume growth and maintaining the good quality standard of our products.

“The performance of the consumer product segment is expected to remain stable, supported by a widening product range and the introduction of new products into new markets,” he added.

The property division, he said, will focus on completing the Megah Rise project in Petaling Jaya while striving to maintain and improve the operational excellence of its existing mall and property management business.

For the financial year ended Dec 31, 2018, its grains and agribusiness segment's revenue increased by 5.0 per cent to RM3.15 billion on the back of higher sales from all flour mills.

Revenue from the film exhibition and distribution segment rose by 12 per cent to RM538 million, due to the strong performance of Malay titles and contribution from cinemas opened in 2017.

The environmental engineering and utilities segment also recorded higher revenue of RM205 for the year, up by 57 per cent as compared to a year before, while the property segment's revenue went up 11 per cent to RM53 million. - Bernama

Source from: https://www.thestar.com.my/business/business-news/2019/03/07/ppbgroup-plans-rm831m-capex-for-next-four-years-to-expand/

KUALA LUMPUR (March 2): PPB Group Bhd said Singapore-listed associate Wilmar International Ltd will fuel PPB's growth in 2018. This is because agribusiness group Wilmar has been investing in its core business.

PPB managing director Lim Soon Huat said the diversified group PPB will continue to benefit from Wilmar's wide portfolio and recent expansion.

“Wilmar will help to fuel our growth because it has been investing. So when it comes to a certain stage, it will then start to harvest what it has invested. I believe that its future earnings will be good, barring any unforeseen circumstances.

“It’s not just palm oil. Wilmar has been investing in their core business besides expanding in other businesses. They are operating in a wider geographical area, so that will also continue to support the business performance of Wilmar," Lim said at a press and analyst briefing here today.

According to PPB's website, PPB owns an 18.6% stake in Wilmar. PPB's website indicates that Wilmar’s business encompasses the entire value chain of the agricultural commodity business, from cultivation, processing, merchandising to manufacturing of a wide range of agricultural products. PPB said Wilmar has over 500 manufacturing plants and an extensive distribution network covering China, India, Indonesia and some 50 other countries.

Meanwhile, PPB's diversified businesses include grains and agribusiness, cinema operations and property development, its website shows.

At the press and analyst briefing, Lim said PPB is expected to record "satisfactory" performance in the financial year ending Dec 31, 2018. “I believe our core business will be supported and to some extent benefit from the improved business activities and also the sentiment in Malaysia, so overall I believe our business going forward will be satisfactory in 2018,” he said.

Source from: http://www.theedgemarkets.com/article/ppb-ride-wilmar-growth-2018

KUALA LUMPUR (Mar 02) -- Malaysian flour-to-property conglomerate PPB Group plans to spend 622 million ringgit ($158.84 million) in capital expenditure to fund film exhibition, distribution, grains and agriculture businesses over the next four years, it said in a statement Friday.

The company plans to spend 296 million ringgit to open nine new movie screens as well as upgrade existing screens, it said.

Two-thirds of the total 259 million ringgit capital expenditure allocated for grains & agribusiness will be used for investment in China, PPB Group Director Ong Hung Hock said at a news conference in Kuala Lumpur. The company also plans to spend $21 million to build a new 500 ton per day flour mill for its Vietnam operation.

The company will allocate 20 million ringgit this year, to construct a new production facility for its venture into catering business, said Ong. The company ventured into the segment via its 45%-owned associate company Kart Food Industries.

PPB Group's net profit for the fiscal fourth quarter fell 24.2% year-on-year to 375.93 million ringgit, while revenue increased 11.1 % to 1.14 billion ringgit

Profit suffered due to lower contribution from 18.6%-owned Wilmar International, as well as reduced profit from grains and agribusiness segments.

Meanwhile, Chemquest Group, the environmental engineering and utilities arm of PPB Group, plans to bid for 500 million ringgit jobs for water and sewerage projects, its managing director Leong Yew Weng said at the same event, adding that contracts are likely to be awarded in next few months.

Source from: https://asia.nikkei.com/Markets/Nikkei-Markets/Malaysia-s-PPB-Group-Plans-MYR622-Mln-Capital-Expenditure-Over-Next-4-Years