MBSB Investment Bank Bhd (MBSB Research) maintained a BUY call on PPB Group Bhd with an unchanged target price of RM12.20.
The analyst says there is no immediate earnings impact from Wilmar International’s dispute over the seizure of its Russian assets and that PPB’s valuation remains supported by steady earnings visibility, stable dividends, and an unchanged FY26 earnings assumption of 13 times price-to-earnings.
The research house noted that Wilmar, in which PPB holds an 18.8% stake, disclosed that a Russian court had ordered the seizure of a 24% interest in JSC Etalon through its indirect investment structure. The case is linked to alleged anti-corruption violations involving Rusagro founder Vadim Moshkovich for actions prior to 2023, which Wilmar has stated are unrelated to the group.
Wilmar has said it will appeal the ruling, arguing that the affected stake was incorrectly treated as solely controlled by the Rusagro Group. Analysts highlighted that the development adds geopolitical and regulatory noise around Wilmar but does not change near-term fundamentals for PPB.
MBSB Research pointed out that no contribution from the affected investment was recognised in Wilmar’s FY25 financial statements, meaning there is no expected immediate impact on PPB’s earnings. The carrying value of Wilmar’s investment in the Profit Group was disclosed at US$310.9 million compared with an initial investment of US$50.6 million.
The research house added that Wilmar’s broader exposure to Russia-related assets remains under legal and regulatory scrutiny, but stressed that Wilmar has maintained it acted in accordance with applicable regulations and continues to cooperate with authorities.
As of 10.37 am, the stock’s price gained 0.36% to RM11.08.
