Operating Margin

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Price: 11.1 MYR 0.91% Market Closed

Market Cap: 15.8B MYR

8.3%

Improving

by 3.3%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

8.3%

Operating Income

458.7m

Revenue

5.5B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

8.3%

Operating Income

MYR458.7m

Revenue

5.5B

Peer Comparison

Country		Company	Market Cap	Operating Margin
MY	P	PPB Group Bhd KLSE:PPB	15.8B MYR	Loading...
JP	G	Goyo Foods Industry Co Ltd TSE:2230	53.2T JPY	Loading...
CH		Nestle SA SIX:NESN	188.5B CHF	Loading...
US		Mondelez International Inc NASDAQ:MDLZ	73.9B USD	Loading...
FR		Danone SA PAR:BN	47.6B EUR	Loading...
ZA	T	Tiger Brands Ltd JSE:TBS	53.3B Zac	Loading...
US		Hershey Co NYSE:HSY	40.1B USD	Loading...
CN		Muyuan Foods Co Ltd SZSE:002714	255.4B CNY	Loading...
ZA	A	Avi Ltd JSE:AVI	35.6B Zac	Loading...
CH		Chocoladefabriken Lindt & Spruengli AG SIX:LISN	26.4B CHF	Loading...
CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	216B CNY	Loading...

Market Distribution

Min	-51 526.8%
30th Percentile	0.6%
Median	6.7%
70th Percentile	13.5%
Max	3 753.7%

Other Profitability Ratios

PPB Group Bhd
Glance View

Market Cap

15.8B MYR

Industry

Food Products

PPB Group Bhd is a prominent Malaysian conglomerate with a rich history woven into the very fabric of Southeast Asia’s economic landscape. Established in 1968 by the influential Kuok family, the company has grown into a diversified powerhouse with interests spanning across multiple industries. At its heart, PPB Group is fundamentally anchored in food production, with its flagship subsidiary, FFM Berhad, leading the way in flour and animal feed manufacturing. This division has secured a pivotal role in the food supply chain, leveraging on regional demand to drive revenue. Underpinning the success of this sector is PPB’s strategic emphasis on efficiency and scale, allowing it to compete fiercely in both domestic and international markets. Through strategic investments in technology and infrastructure, PPB ensures robust, sustainable operations that cater to ever-growing regional needs. Beyond its staple business in food production, PPB Group is also a significant player in Malaysia’s property development, cinema operations, and environmental engineering sectors. Golden Screen Cinemas, its wholly owned subsidiary, is the largest cinema operator in Malaysia, enhancing PPB’s portfolio by tapping into entertainment and lifestyle consumer spending. Meanwhile, the Property division develops residential and commercial projects, creating value through its astute eye for prime locations and quality developments. These diversified ventures align with PPB's philosophy of creating long-term shareholder value, as each sector generates robust cash flows that mitigate the cyclical nature of the individual markets they serve. Uniting these diverse operations is a management ethos characterized by prudent capital allocation, steady expansion strategies, and an unwavering commitment to sustainable growth, which together continue to underpin PPB Group’s enduring success.

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PPB Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

PPB Group Bhd
KLSE:PPB

Peer Comparison

Market Distribution

Other Profitability Ratios

PPB Group Bhd
Glance View

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PPB Group Bhd KLSE:PPB