Wilmar 04 (Feb 15 - Dec 24)

Re: Wilmar 04 (Feb 15 - Dec 17)

Postby winston » Fri Aug 12, 2016 8:05 am

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Wilmar posts first-ever quarterly loss, hurt by oilseeds business

Wilmar, the world’s largest palm oil processor, posted a net loss of US$220mil (RM881.5mil) for the three months ended June.

SINGAPORE: Singapore-based Wilmar International Ltd posted its first-ever quarterly loss on Thursday, saying untimely purchases of soybeans hurt its oilseeds and grains business, while its sugar segment was hit by bad weather and hedging losses.

The world’s largest palm oil processor and one of the biggest soybean buyers posted a net loss of US$220mil (RM881.5mil) for the three months ended June versus a net profit of US$193.2mil (RM774.2mil) a year earlier.

Revenue rose nearly 1% to US$9.37bil (RM37.5bil).

Soyabean oil futures on the Dalian Commodity Exchange, a benchmark for China, showed sharp variations during the quarter. Prices rose as high as 6,644 yuan (US$1,001) a tonne on April 21 and then dropped to as low as 5,838 yuan in May before climbing to 6,266 yuan to end the quarter.

US soybean futures rose about 27% in the second quarter, while palm oil slumped 13.7% during the period.

Pretax profit at its tropical oils segment rose 13.6% to US$186.3mil (RM746.5mil) thanks to its downstream businesses, while plantation performance was affected by lower production volume.

Its oilseeds and grains segment recorded a loss before tax of US$343.8mil (RM1.4bil), while the sugar business pretax loss widened.

“Notwithstanding the one-time loss in 2Q2016, the group’s integrated agribusiness model remains intact and resilient,” Kuok Khoon Hong, chairman and chief executive officer, said in a statement.

“Barring unforeseen circumstances, the group’s performance for the rest of the year is expected to be satisfactory.” Its shares closed flat at S$3.09 on Thursday ahead of the results. The company had flagged the loss in July.

Source: Reuters
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Re: Wilmar 04 (Feb 15 - Dec 17)

Postby winston » Wed Sep 07, 2016 11:49 am

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August 15, 2016

Business As Usual Now

Wilmar’s business operations are back to normal after posting losses in 2Q16 due to its wrong market view on soybean.

Soybean prices weakened in 3Q16, which showed that its view was right, while its timing was wrong.

Bad weather affected its upstream production; this will be offset by better contributions from downstream operations and Consumer Pack. However, trading risk remains a concern for now.

Maintain SELL. Target price: S$3.05

VALUATION/RECOMMENDATION

Maintain SELL with SOTP-based target price of S$3.05. This translates into an 11.5x blended 2017F PE (5-year mean 1-forward PE: 12.5x). Although earnings could improve in the subsequent quarters, regaining investors’ confidence might take a longer time now.

SHARE PRICE CATALYST
Less volatile earnings. Wilmar is now focusing on expanding its Consumer Packs business to have it stand as a more stable earnings contributor. This expansion is progressing well but it will still take a few years for Wilmar to see a more significant contribution from this segment.



Source: UOBKH

https://research.uobkayhian.com/content ... d44bd5c81e
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Re: Wilmar 04 (Feb 15 - Dec 17)

Postby winston » Wed Sep 07, 2016 11:54 am

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Aug 14, 2016

Growth potential in consumer products

We are more positive on Wilmar’s outlook following management’s guidance for a better 2H16.

The huge losses in oilseeds and grains are a one-time event.

Wilmar will tweak risk management policy to reflect higher volatility in the market.

Future growth will come from its plans to grow its consumer products segment.

Maintain Reduce with TP of S$3.05 due to unexciting near-term prospects.

Source: CIMB

https://brokingrfs.cimb.com/beYwAXFj63i ... dIE1A2.pdf
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Re: Wilmar 04 (Feb 15 - Dec 17)

Postby winston » Wed Sep 07, 2016 11:58 am

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August 12, 2016

A long term story

Lacking near term catalysts.

We do not anticipate catalysts that would move the stock significantly higher in the near term;
given heightened risk profile following significant 2Q16 losses.

Notwithstanding continued biodiesel allocation in Indonesia; expansion of India presence (through Adani-Wilmar’s proposed
JV with Ruchi); and gradual penetration of well-established brands – including that of Goodman Fielder –in China; Wilmar’s FY17F-20F earnings are expected to expand at a c.4% CAGR – based on our revised forecasts.

Valuation:

We employed DCF methodology (FY17F base year) to arrive at our TP of S$3.13 (WACC 7%, TG 3%). With 1% potential upside to our revised TP, we downgraded our rating on the stock to HOLD.


Key Risks to Our View:

Wilmar’s share price is influenced by palm oil refining/soybean crushing margins on top of CPO/sugar price expectations.

There would be downside risk to our CPO price forecasts if Pertamina’s biodiesel offtake fails to live up to our expectations
(2.5m kl) this year.

As Wilmar is an index component, changes in its weightings would also make it vulnerable to swings significantly above or below our TP.


Source: DBS

https://researchwise.dbsvresearch.com/R ... E=cbdhik-b
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Re: Wilmar 04 (Feb 15 - Dec 17)

Postby winston » Fri Nov 11, 2016 9:17 am

Wilmar posts record earnings of US$392 mil in 3Q

By Gwyneth Yeo

SINGAPORE (Nov 10): Wilmar International, the agribusiness group, reported record earnings of US$392.2 million ($549.8 million) for 3QFY16, a 46.6% increase over the earnings of US$267.6 million in 3QFY15.

The improved earnings were also driven by good performance from the Tropical Oils segment and the Oilseeds and Grains segment which saw a significant recovery from 2QFY16.

Core net profit grew 10% to US$384.9 million from US$350.7 million a year ago.

Share of results of joint ventures & associates rose by 97.2% to US$28.6 million, due to the improved contributions from its investments in China, Africa and Ukraine.

Wilmar also posted a gain of US$7.4 million arising from mark-to-market gains on its investment securities, which were partially offset by foreign exchange losses recognised on intercompany loans. Excluding these non-operating items, the group’s core earnings rose 9.8% to US$384.9 million.

The Tropical Oils segment posted an 81% increase in pretax profit to US$169.3 million, despite lower production volumes, as crude palm oil prices improved during the quarter.

Oilseeds and Grains’ pretax profits rose marginally to US$248.1 million, while Sugar’s pretax profits fell 21% to US$86.4 million following the continued disruption in harvesting due to wet weather in Australia and the poorer results from the merchandising business.

For the quarter to Sept, revenue rose 4.1% to US$11.1 billion, on the back of higher commodity prices.

Selling and distribution expenses fell 10.6% to US$439.6 million and administrative expenses fell 8.5% to US$148.6 million.

Wilmar’s Chairman and CEO, Kuok Khoon Hong, said that the group’s performance is expected to be “satisfactory” for the rest of the year, while it continues “to execute on its stated growth strategy, with emphasis on its downstream businesses and focusing on high growth markets in Asia and Africa”.

Shares in Wilmar closed 3 cents higher at $3.35 on Wednesday.

Source: The Edge

http://smr.theedgemarkets.com/article/w ... 3-87358173
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Re: Wilmar 04 (Feb 15 - Dec 17)

Postby winston » Fri Nov 11, 2016 10:31 am

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Wilmar: 3Q16 net profit up 47%

Wilmar International Limited (WIL) reported its 3Q16 results yesterday evening.

Revenue was up 4.1% YoY to US$1.1b on higher commodity prices.

Net profit rose 47% to US$392.2m while core net profit was also higher by 10% to US$394.9m, driven by both Tropical Oils segment and Oilseeds segment.

On Tropical Oils segment, although Plantation results were affected by lower production volume, pre-tax profit rose 81% on better crude palm oil prices during the quarter.

Oilseeds segment’s pre-tax profit was up 1.9% and showed recovery from 2Q16.

However, Sugar business pre-tax profit was weaker by 21% due to its merchandising business as well as disruption to cane harvesting activities due to wet weather in Australia.

For 9M16, revenue was marginally up 0.7% to US$2.9b, while net profit declined 40.6% to US$411.5m.

Source: OCBC
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Re: Wilmar 04 (Feb 15 - Dec 17)

Postby behappyalways » Mon Feb 20, 2017 10:13 pm

Wilmar posts 70% rise in 4Q earnings to $836 mil on stronger all-round performance
http://www.theedgemarkets.com.sg/articl ... erformance
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Re: Wilmar 04 (Feb 15 - Dec 17)

Postby winston » Tue Feb 21, 2017 6:57 am

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PPB Group Bhd's associate Wilmar Q4 profit rises 70%

Revenue at Wilmar, which counts US agricultural products trader Archer Daniels Midland Co among its shareholders, was up 26.7%.


Wilmar’s 2016 annual net profit fell 5% to US$972.2mil (RM4.33bil), its smallest in nine years, due to untimely purchases of soybeans which led to a loss in the second quarter.


Source: The Star

http://www.thestar.com.my/business/busi ... ises-70pc/
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Re: Wilmar 04 (Feb 15 - Dec 17)

Postby winston » Tue Feb 21, 2017 10:02 am

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Wilmar: Strong 4Q16 showing

Wilmar International Limited (WIL)’s FY16 revenue was up 6.8% to US$41.4b on stronger sales volume, which was largely within expectations.

Net profit was down 5.0% to US$972.2m while core net profit was also lower by 14% to US$976.6m, mainly due te S$343.8m loss in Oilseeds & Grains segment in 2Q16.

Nonetheless, net profit came in above Bloomberg’s consensus expectations (~US$813m).

A strong 4Q16 showing saw a 27% and 70% increase YoY for revenue and net profit, respectively, driven by better performance across all segments, contribution from associates as well as recognition of deferred tax assets of US$142.1m.

On a full year basis, Tropical Oils’ pre-tax profit rose 94% to US$184.3m, while Sugar’s pre-tax profit grew 49% to US$125.3m (after a US$33.5m impairment charge).

Pending an analyst briefing later today, we are keeping our HOLD rating while our S$3.18 is under review.

A final dividend of S$0.040/share was declared, bringing total FY16 DPS to S$0.065/share, vs. S$0.080/share in the preceding year.

Source: OCBC
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Re: Wilmar 04 (Feb 15 - Dec 17)

Postby winston » Tue Feb 21, 2017 10:12 am

How sustainable is this?

Although we believe that Wilmar will show strong 1Q FY17 results, we are hesitant to be overly bullish as there is little visibility going forward.

We maintain NEUTRAL. We revise up marginally our FY17/18 earnings estimates by 3-4%, and also roll over our target price to S$3.73 from S$3.10, taking into account the more vibrant China and Singapore markets.

Dividends for full year FY16 totalled 6.5 US cents (8.0 cents in FY15 and 7.5 cents in FY14), a 30% dividend payout.

Source: CS
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