Wilmar 04 (Feb 15 - Dec 20)

Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Tue Sep 15, 2020 9:26 am

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Wilmar International (WIL SP)
Be Patient; Re-iterate BUY


Re-iterate BUY on Wilmar despite the recent setback from the unexpected placement by
ADM and the final approval for YKA listing taking longer than expected.

Investors should focus on the potential value creation from YKA listing as well as a potential
special dividend.

Beyond YKA’s listing, the strong 1H20 earnings have led to a 10% consensus earnings upgrade, and Wilmar could potentially outperform consensus again on better-than-expected margins.

Maintain BUY with a higher target price of S$5.35.

Source: UOBKH

https://research.uobkayhian.com/content ... 959f8f0122
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Wed Sep 16, 2020 6:28 pm

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Wilmar subsidiary receives final registration approval for China IPO, listing to take place by mid October 2020

by Felicia Tan

Yihai Kerry Arawana Holdings (YKA), the 99.99%-owned subsidiary of Wilmar International, has received final registration approval for listing on the Shenzhen Stock Exchange ChiNext Board from the China Securities Regulatory Commission (CSRC) on September 16.

YKA will issue new shares (IPO shares) for the listing of about 10% of its issued share capital on an enlarged basis.

According to a filing on September 16, Wilmar says strategic investors, which include mainly state-owned funds, sovereign wealth funds and insurance companies, have been identified to subscribe for approximately 30% of the IPO Shares.

The final subscription size by the strategic investors and the composition of the strategic investors are still subject to final confirmation by the regulatory authorities.

The listing is estimated to take place by mid-October 2020.

Wilmar says despite the final registration approval for listing, there is “no certainty” that the listing will proceed as it is still subject to prevailing market conditions.

Shares in Wilmar closed 13 cents higher, or 3.1% up, at $4.30 on September 16, with 13.0 million shares changed hands.

Source: The Edge

https://www.theedgesingapore.com/news/i ... -place-mid
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Thu Sep 17, 2020 9:14 am

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YKA gets green light for China listing

Wilmar’s subsidiary YKA has received final registration approval for listing on SZSE ChiNext Board. The listing could take place by mid-Oct 2020.

We are positive on this as the listing of YKA will help unlock value for the group’s assets in China and catalyse its share price.

Market could be underestimating YKA’s potential value as the implied P/E for YKA at Wilmar’s current price is 19.4x, against its comparable peers’ of 38x.

Should YKA’s IPO fetch a 38x P/E valuation, we estimate the market cap for YKA to be around US$24.3bn, higher than Wilmar’s current market cap of US$20.1bn.

Based on our estimates, if YKA is valued at P/Es of between 23x and 38x, its potential market capitalisation should be between US$14.7bn and US$24.3bn.

We value Wilmar's remaining business (ex-YKA) at 12x-16x to arrive at a valuation of between
US$7.4bn and US$9.9bn.

Combining these two parts, we estimate Wilmar's market cap to be in the range of US$22.1bn to US$34.2bn (or S$4.81 to S$7.43 per share), which is higher than its current share price of S$4.30 per share.

Assuming Wilmar (ex-YKA) is valued at 12x P/E, we estimate the implied P/E for YKA at Wilmar’s current share price to be just 19.4x.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 91C0C31F9A
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Fri Sep 18, 2020 9:24 am

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WILMAR INTERNATIONAL (WIL SP)
Recommendation : BUY
Fair Value : SGD 5.40

ONE STEP CLOSER TO IPO

• Listing expected to take place by mid-Oct
• IPO proceeds to be used to fund YKA’s capital expenditure
• Potential special dividends post-IPO

Wilmar announced that Yihai Kerry Arawana Holdings Co., Ltd (YKA) has received final registration approval for listing on the Shenzhen Stock Exchange ChiNext Board from the China Securities Regulatory Commission (CSRC).

Assuming one month of pre-IPO investor education, we expect the listing of YKA to take place by mid-Oct 2020.

From our sensitivity analysis, Wilmar’s share price will potentially trade in the range of S$4.44 to S$6.50 post-IPO, based on our assumptions of 14x P/E for Wilmar’s ex-YKA business, at 15% conglomerate discount.

We like Wilmar given its strong penetration and brand names in China and expect the performance of its core business to remain resilient in 2H20, notwithstanding the Covid-19 pandemic.

We believe the IPO will unlock value for Wilmar’s shareholders and further grow Wilmar’s business in China. Our fair value estimate remains at S$5.40.

Source: OCBC
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Thu Sep 24, 2020 7:40 am

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Wilmar subsidiary to IPO at issue price of $5.16; expects to raise $2.79 bil

by Felicia Tan

Wilmar’s 99.99%-owned subsidiary Yihai Kerry Arawana Holdings (YKA) has determined the issue price for its China IPO at RMB25.70 ($5.16) per YKA share.

The price was determined jointly with the sponsor and joint lead underwriter of the proposed listing China Securities, as well as China International Capital Co, the other joint lead underwriter of the proposed listing.

The price translates to a price-to-earnings multiple of 31.12x based on YKA’s financial year 2019 recurring net profit and enlarged post-IPO share capital.

According to a filing on September 24, the average price-to-earnings multiple of other listed companies in the same industry as YKA – such as agricultural and food processing industry group C13 – for the immediate preceding month was 41.86x.

Wilmar says the issue price was based on investor demand and took into consideration the industry that YKA is engaged in, the comparable valuations of other listed companies in the same industry, the YKA group’s fund raising requirements and the joint lead underwriters’ underwriting risk.

Through its IPO, YKA expects to raise an amount of some RMB13.9 billion ($2.79 billion) based on its issue price and the total number of new shares to be issued for the proposed listing.

Strategic investors, including state-owned funds, sovereign wealth funds, and insurance companies such as GIC Pte Ltd., People’s Daily Media and Advertising Company, China Oil Asset Management, and China Life Insurance, have been allocated 30% of the IPO shares.

The shares allotted will be subject to a one-year moratorium on transfer starting from the first trading date.

The proposed listing is slated to take place by mid October 2020.

Shares in Wilmar closed flat at $4.38 on September 23.

Source: The Edge

https://www.theedgesingapore.com/news/i ... se-279-bil
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Thu Sep 24, 2020 11:27 am

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Wilmar has a 99.99% stake in YKA and that the latter’s market capitalisation would be around S$28.2bln upon listing.

This would indicate that YKA’s market cap would be slightly larger than Wilmar’s own market cap at S$28.0bln.

At $4.38, market cap of Wilmar is S$28,046mln, FY19 P/E is 16.1x, current P/B is 1.2x, FY19 dividend yield is 3.1%, FY19 dividend payout ratio is 46.5% and its current net debt position of US$12.6mln equates to net gearing of 76.5%.

According to Bloomberg consensus, analysts are on average expecting its FY20F net profi t to decrease by 2.6% to US$1,260mln (from US$1,293mln in FY19) which equates to FY20F P/E of 16.0x.

Meanwhile, FY20 dividend per share is forecasted to remain unchanged at US$0.093 (FY19 =
US$0.093) which equates to a dividend yield of 3.1% and dividend payout ratio of 47%.

Also according to Bloomberg consensus, the average analyst target price of Wilmar is $5.13, representing a 17.3% upside from current levels.

Given that YKA will have a bigger market cap than Wilmar’s own market cap, the stock will likely remain in “play”, especially ahead of its actual listing in mid-Oct’20.

Source: lim & Tan
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Fri Sep 25, 2020 10:54 am

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Read through from IPO pricing of YKA

Wilmar’s subsidiary YKA has set its China IPO pricing at Rmb25.7 per share.

This translates into a historical P/E of 31.12x (above our base case of 26x).

Wilmar remains an Add. It offers a cheaper and more liquid entry to YKA.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 897C2DF053
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