FACULTY OF BUSINESS AND MANAGEMENT UITM KAMPUS

MACHANG, KELANTAN

INVESTMENT MANAGEMENT (FIN 358)

D1BA1115A

FUNDAMENTAL AND TECHNIQAL ANALYSES FOR THE LISTED

COMPANY OF PBB GROUP

PREPARED FOR:
PUAN ROSELIZA BINTI HAMID

PREPARED BY:

NAMA NO. MATRIKS.

MUHAMMAD SHOFI BIN MOHD SABRI 2021126633

MUHAMMAD AFIQ BIN ACHDIAT TAUFIK 2021108617

MIRZA MAISARAH BINTI MOHD NIZAM 2021104357

IRDINA ILMUNA BINTI MOHD TARMIZI 2021111393

MEOR ADAM BIN MEOR AZUAN 2021123215

TABLE OF CONTENT

NO. TABLE OF CONTENTS PAGE

1 INTRODUCTION 1

2 FUNDAMENTAL ANALYSIS 2-6

I. LIQUIDITY RATIO
II. MARKET VALUE RATIO
III. PROFITABILITY RATIO
IV. LEVERAGE RATIO

3 TECHNIQAL ANALYSIS 7-8

1. DAILY TREND ( SHORT-TERM TRED )

2. SECONDARY TREND ( MEDIUM-
TERM TREND)

4 CONCLUSION 9

5 APPENDIX 10-13

6 REFERENCES 14

i
INTRODUCTION

PPB Group Berhad is a prominent Malaysian conglomerate with a rich history and diverse
business interests. Established in 1968, the company has played a significant role in the country's
economic development and continues to be a major player in various industries. PPB Group's vision is
to be a leading conglomerate that contributes to the sustainable growth and prosperity of Malaysia. The
company aims to achieve this by leveraging its core businesses and exploring new opportunities both
domestically and internationally. By staying ahead of market trends and embracing innovation, PPB
Group seeks to be at the forefront of industry advancements and create value for its stakeholders.

The mission of PPB Group revolves around delivering quality products and services while
upholding the highest standards of integrity and corporate governance. The company strives to be a
trusted partner and provider, catering to the needs of consumers across its diverse business segments.
PPB Group is committed to enhancing customer satisfaction through continuous improvement,
technological advancements, and a customer-centrist approach. Additionally, PPB Group places great
importance on sustainability and social responsibility. The company is dedicated to conducting its
operations in an environmentally responsible manner, minimizing its ecological footprint, and actively
contributing to the well-being of local communities. By integrating sustainable practices and
considering social impacts, PPB Group aims to create a positive and lasting legacy.

PPB Group Berhad envisions itself as a leading conglomerate in Malaysia, driving sustainable
growth and contributing to the nation's prosperity. The company's mission centers on delivering high-
quality products and services while upholding integrity and corporate governance. By embracing
innovation, sustainability, and social responsibility, PPB Group strives to create value for its
stakeholders and make a positive impact on society. Fundamentals analysis is a method used to analyse
the factors that give impact the price in the future. It also calculates the intrinsic value of an asset such
as the ratio of the assets. It is analyzed based on the influences and external events toward the industry
trends and financial statements of the company. There are two types of fundamental analysis includes
top-down analysis and bottom-up analysis. Top-down analysis is based on the view of the economy,
starting from the entire market before narrowing down the industry, sector, and specific economy.
While bottom-down analysis starts from a specific share and determines all the factors that will give
impact its price. Technical analysis is a technique that predicts and examines the price movements in
the yet to come of the economic market This technique requires market statistics and historical price
charts. As a result, the merchants are able to classify and understand the forgoing market patterns and
correctly the forecast of future prices. The tools of this technique are the wide-ranging that enables
them to use on verdict the pattern and trends on charts such as resistance levels, averages, and moving.
The purpose of this tool is at ease to identify the actions and understand the chart activities for the
traders.

1
FUNDAMENTAL ANALYSIS

⚫ LIQUIDITY RATIO
Liquidity ratios are intended to indicate the firm's ability to meet its financial
commitments. Typically, liquidity ratios focus on short-term commitments. Hence,
these ratios are designed to give an indication of short-term cash-flow crises

CURRENT RATIO
Measure the relationship between current assets and current liabilities. As a rough
rule of thumb, if the current ratio exceeds 1, then the firm has sufficient current
assets to meet its short term obligations.

Current Asset
The formula of Current Ratio = -------------------------------------------
Current Liabilities

866 199
Current ratio in 2020 = -------------------------- = 43.94 times
19 714

788 944
Current ratio in 2021 = -------------------------- = 38.41 times
20 538

929 781
Current ratio in 2022 = ------------------------- = 49.58 times
18 754

For 2020, it shows that the firm's ability to pay is RM 43.94 for RM1 of its short-term
liability.
For 2021, it shows that the firm's ability to pay is RM 38.41 for RM1 of its short-term
liability.
For 2022, it shows that the firm's ability to pay is RM 49.58 for RM1 of its short-term
liability.

To summaries the current ratio for PBB GROUP , we can assume that the most
positive figure is in 2022 for the group by having 49.58 times, as the firm has a higher
ability to meet short-term obligations, compare to 2020 which has 43.94 times and
2021 which has 38.41 times.

2
MARKET VALUE RATIO
The market ratios measure how investors view the firm's past performance and its future prospects.
Generally, the firm will have relatively good market ratios given that liquidity, asset management, debt
management, and profitability ratios are good.

Dividend per share (DPS)

The sum of declared dividends for every ordinary share issued

Amount of Dividend Paid on Common Stockholders

The formula of Dividend per share = ----------------------------------------------------------------
No.of Common Stock Outstanding

441 006
Dividend per share in 2020 = -------------------------- = 0.31
1 429 314

682 847
Dividend per share in 2021 = -------------------------- = 0.48
1 429 314

526 362
Dividend per share in 2022 = -------------------------- = 0.37
1 429 314

The dividend that PBB GROUP has created for the year 2022 is RM 0.37 . For the year 2021,
the dividend per share is RM 0.48, and for the year 2020, PBB GROUP receives a dividend is
RM0.31 . Based on that year, the dividend per share increase from 2020 to 2021 by RM 0.17.
The dividend decreased by RM 0.11 between 2021 and 2022. This specifies that they are
unable to consistently make a profit given their current financial situation, which is exposed
by an unhinged economy and market.

Price/Earnings ratio (P/E ratio)

Measures price of common stock relative to earnings. The ratio referred to as earnings
multiplier ratio, i.e. how much per dollars of net earnings, investors are willing to pay for a
stock.

Market Price
The formula of Price/Earnings ratio = --------------------------
EPS

18.52
Price/Earnings ratio in 2020 = ---------------------- = 0.2
92.57

3
 17.10
Price/Earnings ratio in 2021 = ---------------------- = 0.16
105.17

17.44
Price/Earnings ratio in 2022 = ---------------------- = 0.11
154.43

The price-earnings ratio generated by PBB in 2020 is 20% . In contrast, the price-earnings
ratio in 2021 is % lower than in 2020. Additionally, in the current year of 2022, PBB GROUP
earns 11%. As we can see, in 2020's price earning is higher than 2021's and 2022's. The price-
earnings ratio declined for the following year, declining by 4% from 2020 to 2021 and by as
much as 5% from 2021 to 2022. As a result, the PBB GROUP trade stock price was the
lowest. In other words, if the price-earnings ratio increases, the investor will be willing to pay
RM1 in earnings. This is the main advantage provided to the business and the shareholders.

Profitability ratio
Profitability ratios seek to establish rates of return and profitability margin that can be
compared across time and compared with other companies.

Return on equity
Indicates the rate of return achieved by the firm's managers on the capital invested by
shareholders.

NET PROFIT
The formula of Return on equity = ----------------------------------- X 100
TOTAL EQUITY

544 038
Return on equity in 2020 = --------------------------------- X 100 = 4.57%
11 894 854

For 2020, indicates that the firm manages to generate RM 0.0457 per RM1 of equity provided
by the shareholders.

774 264
Return on equity in 2021 = --------------------------------- X 100 = 6.46%
11 987 245

For 2021, indicates that the firm manages to generate RM0.0646 per RM1 of equity provided
by the shareholders

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 671 696
Return on equity in 2022 = --------------------------------- X 100 = 5.55%
12 107 616

For 2022, indicates that the firm manages to generate RM0.0555 per RM1 of equity provided
by the shareholders.
In contrast between the years 2020, 2021, and 2022 for PBB GROUP in return on equity, we
can presume that the year 2021 is more earnest which is 6.46%.

Return on assets
Indicates the rate of return to all claimants on the firm. Measures how efficiently the firm's
total resources are being used in generating income.

NET PROFIT
The formula of Return on Assets = ----------------------------------- X 100
TOTAL ASSETS

544 038
Return on Assets in 2020 = --------------------------------- X 100 = 4.56%
11 919 227

For 2020, it shows that the firm is able to generate net earnings of RM 0.0456 for RM1
investment in its assets.

774 264
Return on Assets in 2021 = --------------------------------- X 100 = 6.45%
12 011 136

For 2021, it shows that the firm is able to generate net earnings of RM 0.0645 for RM1
investment in its assets.

671 696
Return on Assets in 2022 = --------------------------------- X 100 = 5.54%
12 128 437

For 2022 , it shows that the firm is able to generate net earnings of RM 0.0554 for RM1
investment in its assets.

When we look at PBB GROUP return on assets for the years 2020, 2021, and 2022, we can
see that the return on assets for 2021 is 6.45% better than the return on assets for 2020 and
2023, which is 4.56% and 5.54% respectively. It is because, in 2021, the firm efficiently used
the total resources in generating profits.

5
Leverage Ratio
The leverage ratios measure the extent to which the firm uses debt to finance its investment,
how well the firm can meet its interest payment obligations, and the financial risks related to
the financing used.

Debt to equity ratio

Measures the amount of debt being used by the company to finance its operations. Higher
debt to equity ratio makes earnings more volatile and increases the probability that the
company will not be able to meet the debt payment and will default the debt. High ratio
indicates greater financial risk.

LONG TERM DEBT

The formula of Debt to equity ratio = ------------------------------------------------ X 100
TOTAL COMMON EQUITY

4 659
Debt to equity ratio in 2020 = --------------------------------- = 0.03 917%
11 894 854

3 353
Debt to equity ratio in 2021 = --------------------------------- = 0.02 797 %
11 987 245

2 067
Debt to equity ratio in 2022 = --------------------------------- = 0.01 707 %
12 107 616

To summarize we can conclude that the year 2022 is the best year for PBB GROUP because
they have the lowest number.

6
TECHNICAL ANALYSIS

CHART 1
This chart shows that is the price stock from January 2022 to December 2022 of the PPB
Group using the candlestick chart in order to do predictions of their performance in the
future.

I) Daily Trend (Short-Term Trend)

CHART 2

Based on Chart 2 that shows the daily trend for six weeks in the early year 2022, from 1
January until 13 February 2022. We can see that from the candlestick chart, this is bullish

7
trend where the line is increasing in the first quarter of the month in 2022. Where the green
colour the price has a tendency to growth since the close price is above the exposed price and
the red colour tends to the downcast priced when the exposed price is directly above the close
by the price. Since the bullish pattern is cumulative, the price will enlargement and increasing
the market share.

Daily After Zoom In

CHART 3

Based on chart 3, we can detect the Hammer candlestick formation happening in the trend.
Between 29 May to 1 June, It has a small body and a long lower wick. The candlestick colour
is likely to be red because the exposed price is above the close price. But the next day, the
candlestick colour tends to be green with also a small body and long lower wick. So, the price
tends to be rising because the close price is above the open price. It means the traders entered
the market and pushed the price up since the price trend was declining. So, it is the bullish
trend or signals going to close out a short position and tighten the stop-losses in the future.
Thus, based on the candlestick chart of the daily trend, PPB Group shareholders need to buy
the signal on the market share. It is because the advantages are belonging to the traders
because the Hammer formation happened since the take profit has a better ratio than the stop-
loss. PPB Group shareholders may tighten the stop-loss into the less risky.

8
CONCLUSION

In conclusion, fundamental analysis and technical analysis can be used for transaction
but it lay simulate the trade either making or losing money. Fundamental analysis teaches as t
how the method of evaluating a security that entails attempting to measure security's intrinsic
value by examining economic factors. Fundamental analysis is also known as PPB Group
financial performance. It includes the balance sheet, income, and cash flow statement which
can be used to calculate ratios that reflect the company's performance.

In Technical Analysis, we can see the analysis action of the market. There are use
price charts such as line charts, bar charts, or candlestick charts used in analysis. The skill to
analyse using tools can determine whether excess returns are made is needed since the
technical analysis is not excellent at signal-to-exit trades. But it is difficult to make stable earn
returns for investors.

The fundamental analysis focused on business rather than stock prices and the
investor plan of the company. It is for long-term investing and fundamentals analysis has a
high probability of being accurate. Moreover, technical analysis is to analyse stocks quickly
which can save time. It also can be used to know price targets and levels at which an idea is
wrong. It is to allow investors to make investment strategies with interpreted risk and reward.

9
APPENDIX

2020

10
2021

11
2022

12
13
 REFERENCES

⚫ https://www.tradingview.com/chart/J7PZUpNw/?symbol=MYX%3APPB

⚫ https://www.ppbgroup.com/

⚫ https://www.bursamalaysia.com/trade/market/securities_market

⚫ https://klse.i3investor.com/web/stock/public-figure/4065

⚫ https://www.referenceforbusiness.com/history2/83/PPB-Group-Berhad.html

⚫ https://www.ppbgroup.com/index.php/investor-relations/financial-performance/annual-reports

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