Wilmar 04 (Feb 15 - Dec 24)

Re: Wilmar 04 (Feb 15 - Dec 19)

Postby winston » Fri Oct 04, 2019 10:22 am

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Wilmar International – BUY

Share price dragged down by haze issue. The annual haze event was more severe this year in early-September with the extended drier weather bringing more attention to plantation companies.

Wilmar’s share price had dropped by 3% after the Greenpeace publication on Indonesia’s burnt land area despite the company not being in the list of companies highlighted in the publication.

We opine that the weaker share price performance was mainly due to the environmental, social and governance (ESG) issue that more funds are paying attention to in recent years.

We note that post the Greenpeace press release, Singapore plantation companies’ share prices have declined by 3%.

Upcoming results could be a price catalyst. The earnings outlook for 2H19 should be better on the back of improving soybean crush utilisation, increasing sales volumes and sustainable and healthy palm refining margins.

Soybean crushing margins improved on the more upbeat demand for soymeal with feed demand from the poultry and aqua sectors partially offsetting lower demand from the swine sector. China consumers are also substituting pork meat with other sources of proteins.

Being the largest palm oil processing company, Wilmar is benefitting from the low palm prices while seeing strong demand, especially from the two its major markets – India and China.

Low prices with good demand volumes have translated into better PBT margins for 1H19 at 4.8% vs 2.2% and 3.2% for 2017 and 2018 respectively. We believe these margins would be sustainable in 2H19.

Share Price Catalysts
Event: Announcement of the final approval for the listing of Yihai Kerry Arawana Holdings.
Timeline: 1-3 months.

Source: UOBKH
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Re: Wilmar 04 (Feb 15 - Dec 19)

Postby winston » Wed Oct 09, 2019 9:02 am

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Wilmar International (WIL SP)
Share Price: SGD3.63
Target Price: SGD3.89
Recommendation: Hold

Weaker crush

Despite recovery in August, Chinese crush margins are back to negative.

Reducing demand for hog feed is one factor. China allowing imports of Argentinian soybean meal is a new factor.

Lower cost soymeal may pressure domestic crushers – including WIL. But palm oil has risen 11% since June while imports to China has shot up 80% in August. This bodes well for WIL’s 2H19 vs. 2Q19.

Nevertheless, until a clearer resolution of ASF and Trade War manoeuvring becomes clearer, we remain cautious. HOLD

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... 95a325.pdf
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Re: Wilmar 04 (Feb 15 - Dec 19)

Postby behappyalways » Wed Nov 13, 2019 5:48 pm

Wilmar reports 10% rise in 3Q earnings to US$447 mil on better performance across all core segments
https://www.theedgesingapore.com/capita ... s-all-core
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Re: Wilmar 04 (Feb 15 - Dec 19)

Postby winston » Thu Nov 14, 2019 12:30 pm

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Wilmar International: A better quarter

Wilmar announced its 3QFY19 results which were above our expectations due to stronger growth in sales volume across all key business segments.

Wilmar’s 3QFY19 overall sales volume grew 6% while revenue fell 2% YoY to US$11.2b due to lower commodity prices.

PATMI increased by 10.2% YoY to US$447.1m this quarter, boosted by Tropical Oils and Consumer Products, partially offset by lower contributions from associates and joint ventures (-63% YoY).

The group reported better performances across all key business segments:
1. Tropical Oils (PBT: +24% YoY)
2. Oilseeds and Grains (O&G) (PBT: +1% YoY) as well
3. Sugar (PBT: +9% YoY).

Management noted that they are still in the process pending China Securities Regulatory Commission (CSRC)’s approval to list Yihan Kerry Arawana (YKA), which is likely to be approved by January 2020.

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

We like Wilmar’s diversification of products and continued efforts to expand its downstream business which could help smooth the volatility of earnings.

With improved crush margin, rising CPO prices, and early Chinese New Year in 2020, we expect a stronger 4QFY19 and an impending IPO will remain as a potential near-term catalyst.

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

Source: OCBC
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Re: Wilmar 04 (Feb 15 - Dec 19)

Postby winston » Thu Nov 14, 2019 12:30 pm

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Wilmar International: A better quarter

Wilmar announced its 3QFY19 results which were above our expectations due to stronger growth in sales volume across all key business segments.

Wilmar’s 3QFY19 overall sales volume grew 6% while revenue fell 2% YoY to US$11.2b due to lower commodity prices.

PATMI increased by 10.2% YoY to US$447.1m this quarter, boosted by Tropical Oils and Consumer Products, partially offset by lower contributions from associates and joint ventures (-63% YoY).

The group reported better performances across all key business segments:
1. Tropical Oils (PBT: +24% YoY)
2. Oilseeds and Grains (O&G) (PBT: +1% YoY) as well
3. Sugar (PBT: +9% YoY).

Management noted that they are still in the process pending China Securities Regulatory Commission (CSRC)’s approval to list Yihan Kerry Arawana (YKA), which is likely to be approved by January 2020.

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

We like Wilmar’s diversification of products and continued efforts to expand its downstream business which could help smooth the volatility of earnings.

With improved crush margin, rising CPO prices, and early Chinese New Year in 2020, we expect a stronger 4QFY19 and an impending IPO will remain as a potential near-term catalyst.

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

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

Postby winston » Thu Jan 09, 2020 4:11 pm

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Wilmar (WIL SP, BUY, TP: SGD4.75)

Still a Top Pick; Maintain BUY

Company Update

Maintain BUY with unchanged TP of SGD4.75, 11% upside and 2.5% yield.

Wilmar is one of our 2020 Top Picks. We expect Wilmar to benefit from higher CPO prices and improved demand for soybean meal and consumer products in the short term.

Meanwhile, upside potential lies in the IPO performance of its China subsidiary, Yihai Kerry, on the Shenzhen Stock Exchange.

Management expects the IPO to take place in 1H20.

Source: RHB

https://research.rhbtradesmart.com/atta ... 2eeecd.pdf
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Fri Feb 21, 2020 11:29 am

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Wilmar International (WIL SP)
2019: Better Than Expected


Wilmar’s 2019 core net profit came in above our expectation where tropical oils earnings were better than expected and the segment achieved its highest PBT margin at 5.4% since 2014.

With Wilmar’s exposure mainly related to consumer staples, we reckon there might be a delay in spending or switch of demand from bulk to consumer packs during the coronavirus outbreak which management does not expect major impact on its businesses.

Maintain BUY. Target price: S$4.75.

Source: UOBKH

https://research.uobkayhian.com/content ... ce0e2ffe1f
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby behappyalways » Fri Feb 21, 2020 3:55 pm

Wilmar reports 120% surge in 4Q earnings to US$438 mil, proposes record-high dividend for FY2019
https://www.theedgesingapore.com/capita ... end-fy2019
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Mon Feb 24, 2020 9:22 am

Wilmar International - Visibility remains limited (WIL SP, CP SGD4.11, HOLD, TP SGD4.37, Plantations)

WIL’s 2019 NPAT came well ahead of expectations.

While WIL’s food staples focus should provide it with some immunity against the Covid-19 epidemic in China, the difficulties it was facing on animal feed from ASF are unlikely to disappear near term.

A prolonged Covid-19 outbreak may impact raw material sourcing, labour and supply chains.

Separately, the timing of its Chinese IPO is currently ambiguous.

As a result, we prefer to maintain HOLD with new TP of SGD4.37 until better clarity arise.

Source: Kim Eng

https://www.kelive.com/KimEng/servlet/P ... &rid=51603
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Mon Feb 24, 2020 9:30 am

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Wilmar International (WIL SP)
Favourable Outlook


Wilmar is expected to see marginal impact from the Covid-19 epidemic as demand for consumer packs is stronger and will mitigate the lower sales volume from the bulk segment.

2020 outlook remains positive on the back of a better palm oil outlook and higher margins for the oilseed and grains segment.

The sugar segment is expected to perform better in 2020 on higher sugar prices.

The proposed YKA IPO is slightly behind schedule but this is not a concern.

Maintain BUY. Target price: S$4.60.

Source: UOBKH

https://research.uobkayhian.com/content ... e9d363e2fe
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