Vinda International 3331

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VINDA INT'L: Existing Wood Pulp Inventory May Still be Positive to GPM

VINDA INT'L (03331.HK) announced that its GPM came in at 37.4% in the interim period ended June, down 1.1 ppt yearly.

The CEO Li Jielin Karen disclosed that the GPM has already been maintained at a higher level during the period, as the company hoarded up inventory of wood pulp at low price to alleviate cost pressure.

She forecast the existing wood pulp inventory to still be positive to the future GPM, viewing the cost structure in the 2H21 to be foreseeable.

Related NewsVINDA INT'L (03331.HK) Half-yr Net Profit $967M, Up 6%; Interim Div $0.1

Source: AAStocks Financial News

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BofAS Cuts VINDA INT'L (03331.HK) TP to $24.6; Rated Neutral

VINDA INT'L (03331.HK)'s 1H revenue hiked 19% YoY while its operating profit dropped 3.7% YoY, implying a 9.5% increase in sales and a 30.4% decline in operating profit in 2Q, mainly due to the high base effect in 2Q, reported BofA Securities.

BofA Securities reiterated the Neutral rating on VINDA INT'L, with its target price trimmed from $30 to $24.6, believing the upgrade of its product mix and potential product price hikes to be able to offset the pressure on its GPM induced by the high pulp price.

Source: AAStocks Financial News

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Nomura Chops VINDA INT'L (03331.HK) TP to $28.9; Rated Buy

VINDA INT'L (03331.HK) achieved 1% sales growth in 2Q21 despite the higher base compared to the corresponding period of last year, due to the active inventory replenishment of distributors, reported Nomura.

Nomura added that the group's results proved to be solid amid fierce competition among different segments, mainly supported by its fine e-commerce performance, stable recovery of B2B business and strong sales from its premium products.

Related NewsVINDA INT'L (03331.HK) Half-yr Net Profit $967M, Up 6%; Interim Div $0.1

Nomura, however, cut VINDA INT'L's target price from $34.1 to $28.9 with its rating kept at Buy to reflect a rather conservative GPM projection given the intensifying competition.

Source: AAStocks Financial News

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Citi Downgrades VINDA INT'L (03331.HK) to Neutral with TP Cut to $22.1

VINDA INT'L (03331.HK)'s 2Q operating profit and net profit plunged 31% and 23% YoY respectively, falling short of Citigroup's estimate, with its GPM and OPM significantly being below the expected figures, reported Citigroup.

The company's management forecasts better industry growth in 2H compared to 1H on easing competition, and expects to maintain the goal of double-digit growth for its business in China, added Citigroup.

Related News: Nomura Chops VINDA INT'L (03331.HK) TP to $28.9; Rated Buy

Citigroup downgraded VINDA INT'L from Buy to Neutral with its target price chopped from $31.7 to $22.1 to reflect the lower GPM and OPM.

Source: AAStocks Financial News

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Vinda profit slumps 78pc

Vinda International (3331) said its third-quarter operating profit slumped by 78.2 percent to HK$77 million, despite a 6.5 percent rise in revenue, due to pressure from higher costs, operational disruptions from Covid-related measures and currency swings.

Though total revenue increased to HK$4.37 billion from July to September, gross profit fell by 17.1 percent yearly to HK$1.19 billion. But the gross margin narrowed by 7.8 percentage points to 27.2 percent over the same period.

Source: The Standard

https://www.thestandard.com.hk/section- ... lumps-78pc

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Tissue issue hits Vinda shares

by Themis Qi

Net profit for the three-month period ended March plummeted 88.4 percent to HK$40 million from one year ago, though total revenue increased 8.8 percent to HK$4.97 billion over the same period.

Essity is considering reducing or selling all of its holdings in Vinda International. The Swedish hygiene and health company owns 51.59 percent of Vinda, and Vinda accounted for 16 percent of Essity's net sales last year.

Source: The Standard

https://www.thestandard.com.hk/section- ... nda-shares

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Vinda surges 12pc as Brazil giant eyes stake

Shares of Vinda International (3331) surged more than 12 percent on reports that Brazil's Suzano, the world's largest pulp maker, may join in the bidding for Vinda's equity.

Essity, the controlling shareholder of Vinda, announced in April a review of its investment strategy, considering the potential divestment of its stake in Vinda, which may involve selling some or all of its shares in the company.

It was reported that Suzano, Bain Capital, CVC Capital Partners and DCP Capital, are potential bidders for Vinda's equity.

The bidders are seeking financing to complete the acquisition and may form a consortium, with Li Chao Wang, Vinda's second-largest shareholder and founder, potentially collaborating with one of the buyers.

Source: The Standard

https://www.thestandard.com.hk/section- ... eyes-stake

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RGE eyes joining Vinda bidding

Singapore-based RGE is considering an offer for Vinda International (3331), sources said, potentially setting up a bidding war for the tissue maker.

The pulp producer is working with advisers on a potential buyout offer for the Chinese firm.

A move by RGE could add a new dimension to the bidding for Essity's 52 percent stake in Vinda, which has drawn bidders such as Suzano, the world's largest producer of hardwood pulp from Brazil.

Buyout firms Bain Capital, CVC Capital and DCP Capital also advanced in the process.

Belinda Tanoto, the daughter of RGE's founder, has built a 7 percent stake in Vinda via Beaumont Capital Fund.

Any new major shareholder will also have to work closely with Vinda's founder Li Chaowang, who owns about 21 percent.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... da-bidding