Wilmar 04 (Feb 15 - Dec 25)

[behappyalways]

Wilmar posts 26% rise in 1Q earnings to $351 mil on improvements in tropical oils and sugar segments
https://www.theedgesingapore.com/wilmar ... r-segments

[behappyalways]

Wilmar says listing of China ops accepted by regulator but waiting for approval
https://www.theedgesingapore.com/capita ... g-approval

[winston]

not vested

Wilmar International (WIL SP)
2Q19 Results Preview: No Suprises; Market Focusing More On YKA Listing

Wilmar is scheduled to report 2Q19 results on 13 Aug 19.

2Q is seasonally the weakest quarter as consumer pack sales are low and also a non-milling season for sugar.

2Q19 results are likely to be a non-event as investors are focusing more on YKA listing.

We are expecting core net profit of US$235m-255m (1Q19: US$250m).

Maintain BUY with a higher target price of S$4.50 after changing our SOTP valuation to value-blended 23x PE for China operation and 11x PE for non-China operations.

Source: UOBKH

https://research.uobkayhian.com/content ... e078cb8665

[winston]

not vested

Wilmar International: Weak set of results

Wilmar announced its 2QFY19 results which were below ours and the street’s expectations.

2QFY19 revenue fell 9% YoY US$9.8b, dragged by lower commodity prices, partially offset by a 4% increase in sales volume.

Net profit decreased by 52% to US$150.9m, mainly due to bigger than expected impact of African swine fever outbreak on soybean meal demand which dragged the crush margin.

For 1HFY19, revenue was down 8% YoY to US$20.2b while net profit fell 22% to US$407.9m, which formed 33% of our full-year forecast.

Strong performances in Tropical Oils (Manufacturing & Merchandising) and Consumer Products were offset by weaker performance from Associates and Sugar.

Rice and flour milling continued to make good progress in 2QFY19.

Pending further details from the analyst briefing, we place our Buy rating and fair value estimate of S$4.26 under review.

Source: OCBC

[winston]

not vested

Wilmar International: Weak set of results

Wilmar announced its 2QFY19 results which were below ours and the street’s expectations.

2QFY19 revenue fell 9% YoY US$9.8b, dragged by lower commodity prices, partially offset by a 4% increase in sales volume.

Net profit decreased by 52% to US$150.9m, mainly due to bigger than expected impact of African swine fever outbreak on soybean meal demand which dragged the crush margin.

For 1HFY19, revenue was down 8% YoY to US$20.2b while net profit fell 22% to US$407.9m, which formed 33% of our full-year forecast.

Strong performances in Tropical Oils (Manufacturing & Merchandising) and Consumer Products were offset by weaker performance from Associates and Sugar.

Rice and flour milling continued to make good progress in 2QFY19.

Pending further details from the analyst briefing, we place our Buy rating and fair value estimate of S$4.26 under review.

Source: OCBC

[winston]

not vested

Wilmar International (WIL SP)
Better 2H19; YKA Listing On Track Regardless Of Market Conditions

We remain positive on Wilmar despite its weak 2Q19 earnings.

Stronger earnings are set to come in 2H19 on higher crushing margins, better contributions from consumer packs in China and profits from sugar as Australia’s sugar milling season has started.

Despite concerns of the listing of YKA being delayed, management maintains their view
that the listing is on track for late-4Q19.

Expect a special dividend post the YKA listing.

Maintain BUY with a new target price of S$4.40.

Source: UOBKH

https://research.uobkayhian.com/content ... d2d4222604

[winston]

not vested

Wilmar International: Tapping the opportunities of rising food demand

Wilmar’s 2QFY19 overall sales volume grew 3.9% while revenue fell 9% YoY US$9.8b due to lower commodity prices.

Net profit decreased by 52% to US$150.9m, mainly due to larger-than-expected impact of African swine fever outbreak on soybean meal demand, lower contributions from the Associates in China and the consolidation of Shree Renuka Sugars.

For 1HFY19, revenue was down 8% YoY to US$20.2b while net profit fell 22% to US$407.9m.

The latter formed 33% and 34% of ours and street’s full-year forecasts, respectively.

Strong performances in Tropical Oils (Manufacturing & Merchandising) and Consumer Products were offset by weaker performance from Associates and Sugar.

Wilmar submitted its Yihan Kerry Arawana IPO application in early July and expects the approval process to take approximately 6-12 months.

We expect the earliest listing date likely to be in 1QFY20 and anticipate a special dividend post IPO.

Maintain BUY with a fair value estimate of S$4.26.

Source: OCBC

[winston]

not vested

What’s New

Aiming for earnings recovery in 2H19

Oilseeds and grains performance could recover even with the prolonged African swine fever outbreak

YKA’s IPO valuation will determine Wilmar’s share price re-rating prospects ahead

Maintain BUY with slightly lower TP of S$4.25

Source: DBS

https://researchwise.dbsvresearch.com/R ... =ehdcakhea

[winston]

3 reasons why the worst could be over for Wilmar

by Stanislaus Jude Chan

SINGAPORE (Sept 13): Agribusiness group Wilmar International found itself crushed in 2Q19 by the African swine fever outbreak, which hit demand for soybeans.

For the 2Q19 ended June, Wilmar posted a 52.3% drop in net profit from continuing operations to US$150.9 million ($209.5 million).

This was mainly due to lower crush margin, as the African swine fever led to reduced pig stocks in China, which in turn brought on lower demand for soybean meal.

Revenue for the quarter fell 9% to US$9.78 billion on the back of lower commodity prices.

Three reasons why the experts believe the worst could be over for Wilmar.
1) Crush margins set to improve
2) Trade war “largely noise”
3) China operations listing to spark growth

Source: The Edge

http://www.theedgesingapore.com/capital ... 401b309bc7

[winston]

not vested

Wilmar International (WIL SP)
Better 2H19 Despite Soft Commodity Prices

We remain positive on Wilmar and expect better earnings in 2H19.

Contributions from oilseeds & grains should improve as China’s soybean crushing margins have improved and we see a rise in festive sales volume from the food products division.

The improvement in tropical oils’ PBT margins is expected to hold in 2H19 as well.

With the sugar crushing season having started in June, we foresee positive contribution vs
losses in 1H19.

Maintain BUY. Target price: S$4.40.

Source: UOBKH

https://research.uobkayhian.com/content ... f338837bf1