Wilmar 01 (May 08 - Dec 09)

[winston]

Singapore's Wilmar Q1 net profit jumps 7 times

SINGAPORE, May 13 (Reuters) - Wilmar International (WLIL.SI: Quote, Profile, Research), Southeast Asia's largest listed palm oil firm, said on Tuesday that its first-quarter net profit rose 590 percent, helped by record high palm oil prices and higher sale volumes.

Wilmar, which owns oil palm plantations and operates milling, crushing, refining and processing plants in Indonesia and Malaysia, said its net profit rose to $343 million in the quarter ending March, from a restated $49.7 million a year earlier.

The company also has a total of four biofuel plants in Indonesia and Malaysia, with combined annual production capacity of 1.05 million tonnes.

Wilmar is expected to post a full-year 2008 net profit of $921.3 million, against $580.4 million in 2007, according to a poll of 14 analysts by Reuters Estimates.

Wilmar made its debut on the Singapore Exchange in August 2006 following a reverse takeover of Ezyhealth Asia Pacific.

In July last year, it completed the purchase of the palm plantation and edible oils businesses belonging to Malaysia's Kuok Group, a move which doubled its plantation landbank to about 570,000 hectares.

Shares in Wilmar fell by about 22 percent in the January-March quarter, after ending last year up 122 percent. The company's stock market value stands at $22.8 billion.

Source: Reuters

[winston]

Not vested anymore.

Singapore Hot Stocks-Wilmar falls after broker downgrade

SINGAPORE, June 4 (Reuters) - Wilmar International fell as much as 3.9 percent after UBS downgraded its rating for the palm oil firm to "neutral" from "buy", citing a lack of short-term upside to its share price.

Wilmar, the world's largest palm oil trader, hit an intraday low of S$5.20 with over 1.8 million shares traded.

UBS analyst Alain Lai said in a broker note Wilmar's share price is fairly valued after it rose 52 percent from a low of S$3.60 on March 18.

But he raised the plantation firm's price target to S$5.90 from S$4.55, citing long-term exposure to a surging Chinese oilseed and edible oil demand.

"We think there is strong upside to Chinese edible oil and soybean demand. Wilmar's 20-25 percent market share of the Chinese soybean crushing market and 40 percent share of palm oil refining capacity imply it is best positioned to benefit," Lai said.

Source: Reuters

[winston]

Not vested. From UBS:-

Share price has fallen 17% from its high of S$5.56 on 30 May

We think Wilmar is trading at attractive values and we upgrade our rating from Neutral to Buy. We are positive on Wilmar because of its exposure to China’s fastgrowing basic food market. In our view, Wilmar’s strong market position in soybean crushing (20-25% market share) and Southeast Asia palm oil merchandising (40% market share) justifies its above-sector PE multiple.

Weaker margins in Q208-Q408 already within market expectation
We think the processing/merchandising margins could weaken in Q208-Q408 following an exceptionally strong Q108. However, we believe this is within market expectations, as Q108 net profit is 33% of consensus’ 2008 forecast. Further, although there is increased regulatory risk (including price caps and export taxes), we think Wilmar’s significant market share and scale allows it to manage the risk well.

USDA lowers season-ending Chinese soybean stock forecasts
In a report on 10 June, the USDA lowered China’s soybean season ending stocks forecasts to 1.8mt, down 38% from the previous forecast of 2.8mt in May. The USDA estimated China’s import of soybeans, soybean oil and palm oil to increase 18%, 25% and 13%, respectively in 2008. With a strong market share in oilseed crushing and edible oils merchandising, Wilmar should benefit.

Valuation: price target of S$5.90
Our price target is based on a SOTP valuation, using DCF analysis, assuming a WACC of 8.5% and long-term growth of 5% for the merchandising, processing and consumer business, and a WACC of 8.5%, long-term growth of 4% and a long term CPO ASP of US$900/t for plantations.

[winston]

Singapore Hot Stocks-Wilmar up news of plantation purchase

SINGAPORE, June 20 (Reuters) - Wilmar International , the world's largest listed palm oil trader, rose as much as 2.6 percent to hit a one-week high on news that it will buy an edible oil business of Unilever in Africa.

The Anglo-Dutch consumer goods group said on Thursday that it has agreed to sell its edible oil business in the Ivory Coast to SIFCA and a 50:50 joint venture between SIFCA and two Singapore-based companies, Wilmar International and Olam International .

[ID:nL19604350] Credit Suisse and Goldman Sachs also issued bullish research reports on the Asian palm oil sector, helping Wilmar jump to S$5.22, with over 2 million shares changing hands.

In its report, Goldman Sachs highlighted Wilmar as one of its top picks for its strong long-term growth potential, saying palm oil prices could rise further.

"Current crude palm oil prices are undervalued relative to crude oil and soybean oil," the bank said.

Credit Suisse noted that exports of Malaysian palm oil to the U.S. have increased significantly since the trans-fat labelling legislation in 2004, and that it remains bullish on palm oil prices.

"Wilmar should be a core holding for long-term investors as it offers high-quality, high-growth exposure to the palm oil sector given market leadership in its downstream businesses and strong organic growth potential," said Goldman Sachs which has a "buy" rating on Wilmar with a target price of S$6 a share.

[millionairemind]

Olam Joint Venture With Wilmar.
Olam Int’l and Wilmar Int’l announced the formation of a 50:50 joint venture company, Olam Wilmar Investment Holdings to acquire a 20%-stake in PureCircle, the leading producer of natural zero-calorie, high-intensity sweeteners from the stevia plant for an aggregate consideration of US$106.2m.

[winston]

Not vested. From UOB-Kay Hian:-


After the recent sell down, we see potential buying opportunity in Wilmar International. Wilmar’s share price is now trading 2.7% below our fair value of S$4.80 and further price weakness would be a buying opportunity.

We recommend an entry price of S$4.30 for Wilmar International.

[purplecloud]

Am Vested .....

11 Jul 2008 11:48 CST DJ MARKET TALK:S'pore Palm Plays Bounce Back From Biofuel Selloff

0348 GMT [Dow Jones] Singapore palm plays heading higher as stocks recover somewhat from recent selloff on worries that political opinion may be turning against biofuels. Wilmar (F34.SG) +0.4% at S$4.74, Indofood Agri Resources (5JS.SG) +1.8% at S$2.24, Golden Agri-Resources (E5H.SG) +0.6% at S$0.79, First Resources (EB5.SG) flat at S$1.10.

All outperforming FTSE ST All Share, currently down 0.1%. Credit Suisse notes, U.K. government backtracked from biofuel targets, driven by worries that use of land for biofuels may push up food prices. But says, according to forecasting service Oil World, global edible oil output not currently enough to meet governments' biofuel target in any case; adds surge in soy oil prices should also boost demand for palm oil, given big price gap vs palm. Reiterates Overweight call on Asian Palm oil sector. (KIG)

[LenaHuat]

Wilmar's landbank is even marginally larger than SimeDarby's.
DBSVickers 2day has a good write-up on this.

[LenaHuat]

Am tracking this ticker closely.
Wonder if this "political opinion is turning against biofuels" issue really affects palm oil??
Does any1 know if the EU parliament has an issue with palm oil??

[winston]

Not vested.

Nomura Cuts target price to S$4.90 (previously $5.90)