Wilmar 04 (Feb 15 - Dec 24)

Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Thu Oct 08, 2020 3:10 pm

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Smooth sailing ahead for Wilmar

by Samantha Chiew

RHB Group Research is reiterating its “buy” call on Wilmar International with a target price of $5.45, as its outlook seems positive.

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

Firstly, analyst Juliana Cai is upbeat on Yihai Kerry Arawana’s (YKA) IPO and its issue price of CNY25.7, which implies a FY19 P/E of 31.1 times and a CNY139 billion ($27.8 billion) market capitalisation.

Comparatively, Wilmar’s share price looks much more attractive, as its 90% stake in YKA already accounts for 87% of its market cap, despite the latter’s contribution to its bottomline (about 60%).

“As YKA’s Shenzhen listing draws near, Wilmar’s share price is likely to remain supported, with a potential rerating coming from the post-IPO performance of YKA’s share price,” says Cai

“We continue to be upbeat on YKA’s share price outlook post-listing, as China’s IPO market remains robust,” she adds.

The 35 new stocks recently listed on the Shenzhen ChiNext Board have recorded an average YTD gain of 161% and the street is also positive on YKA’s prospects, and expects an EPS growth of 11-15% per annum over FY2021-2022.

“In addition, we believe there is sufficient investor interest on YKA, as its shares are oversubscribed by 600 times by offline investors, and oversubscribed by 1,750 times by online retail investors,” says Cai.

Timeline-wise, Wilmar’s timetable stated that YKA will publish the issuance results, as well as its updated prospectus on October 9, with the listing expected to happen over the next two weeks.

Another thing that the analyst is optimistic about is Wilmar’s upcoming 3QFY2020 earnings.

The food products and feed & industrial products segments should see a continued strong performance, bolstered by the consumption recovery in China, as well as higher soft oil and soymeal prices in 3QFY2020.

“While soybean prices have also increased, we believe the group has accumulated adequate beans in its inventory – so we should see a laggard effect on its raw material cost,” says Cai.

Meanwhile, plantation and sugar milling should also benefit from a seasonal high in 3QFY2020, as well as improving CPO and sugar prices.

As at 11.20am, shares in Wilmar are trading at $4.56 or 15.8 times FY2020 P/E and 1.2 times P/B. The stock has a dividend yield of 2.7%.

Source: The Edge

https://www.theedgesingapore.com/capita ... ead-wilmar
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Wed Oct 14, 2020 12:25 pm

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Wilmar subsidiary IPO shares to commence trading on Oct 15

by Felicia Tan

Wilmar International on Oct 14 announced that 542,159,154 new shares representing 10% of Yihai Kerry Arawana (YKA)’s enlarged issued share capital have been allotted to investors for the listing of YKA’s IPO shares.

Accordingly, YKA has become a 89.99%-owned subsidiary of Wilmar from 99.99%-owned previously.

The IPO shares will begin trading on the Shenzhen Stock Exchange ChiNext Board on Oct 15.

Shares in Wilmar closed flat at $4.65 on Oct 13.

Source: The Edge

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

Postby winston » Fri Oct 16, 2020 9:12 am

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Wilmar International (WIL SP)
Share Price: SGD4.36
Target Price: SGD5.24
Recommendation: Buy

Value dislocated?

WIL fell -6% despite a +118% opening of YKA.

We believe the downward price action is unjustified.

From a market cap differential this implies that WIL’s non-Chinese businesses (44% of revenue) have no value.

It also ignores potential for special dividends.

Operationally, we expect the group to deliver 33% YoY 2021E EPS growth.

Operational recovery underway

WIL is geared towards the earlier COVID-19 recovery cycle in China.

In 2Q20, WIL’s food product segment volumes increased 20% YoY and we expect the momentum to strengthen in 2H, as hotels, restaurants reopen.

Crushing margins, which have been dampened due to African Swine Flu are improving from lower input costs and farmers rebuilding stocks (1H Feed & Industrial Products PBT/t +88% YoY).

Together with better demand conditions in markets outside China, we expects EPS to see positive momentum going in to 2021E.


We maintain our TP of SGD5.24 for now pending the 3Q20 trading update on 30 Oct and are BUYers on dips.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... 7b3823.pdf
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Mon Oct 19, 2020 9:08 am

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Mind the gap!

YKA rose 118% to Rmb56 per share yesterday (IPO price: Rmb25.7/share).

This is not reflected in Wilmar’s share price, which fell 6.4%, suggesting that the holding company is underappreciated with its trailing market cap.

We continue to think Wilmar represents a cheaper and more liquid entry into YKA and the gap will likely narrow — favouring Wilmar.

Reiterate Add. TP $5.53

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 71F9591207
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Sat Oct 31, 2020 8:18 am

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Wilmar reports record 3Q core net profit of US$501.4 mil

by Felicia Tan

Wilmar International, Asia’s leading agribusiness group reported net profit of US$536.6 million ($732.5 million) for the 3QFY2020 ended September, up 20% from the net profit of US$447.1 million the year before.

3QFY2020 revenue climbed 19.3% y-o-y to US$13.32 billion, while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 19.8% y-o-y to US$1.09 billion.

For the 9MFY2020 ended September, Wilmar reported a “strong” core net profit of US$1.14 billion, up 34.4% y-o-y due to three consecutive quarters of stellar performances.

Overall volume for food products grew by 15.9% y-o-y to 7.4 million metric tons driven by strong growth in volume for sugar and flour products, as well as contributions from sales of products of Wilmar’s subsidiary, Goodman Fielder.

Feed and industrial products saw growth in sales of 16.1% y-o-y to 16.5 million metric tons in 3QFY2020 due to strong sugar merchandising and high soybean crushing activities for the quarter.

On Oct 15, Wilmar’s now 89.99%-owned subsidiary Yihai Kerry Arawana (YKA) commenced IPO trading on the Shenzhen Stock Exchange. The group received net proceeds of some US$2.05 billion from the new YKA shares issued in connection with the IPO.

A special dividend of approximately 15% of the total IPO proceeds will be declared in 2021 to commemorate the successful listing of YKA.

Details will be disclosed in February 2021 with the release of Wilmar’s full year results ending Dec 31, 2020.

Source: The Edge

https://www.theedgesingapore.com/capita ... us5014-mil
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Mon Nov 02, 2020 9:28 am

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Wilmar International (WIL SP)
3Q20: Results Above Expectations


Wilmar’s 3Q20 core net profit came in above our expectation on the back of a strong performance from consumer products and oilseeds & grains, supported by robust sales volumes.

Earnings growth should remain positive with:
a) sales volumes remaining healthy thanks the Chinese economy’s rebound and
b) easing of lockdown measures in other countries.

Wilmar also announced its plan to distribute 15% of YKA’s IPO proceeds as special dividend. Maintain BUY. Target price: S$5.35.

Source: UOBKH

https://research.uobkayhian.com/content ... 4f3982b770
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Mon Nov 02, 2020 1:21 pm

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Record 3Q earnings and special dividend

Wilmar posted a record-breaking 3Q core earnings, beating expectations.

It also announced a special dividend (approx. 15% of YKA IPO proceeds).

The group said results for the rest of the year are expected to be good.

Reiterate Add, with an unchanged TP of S$5.53.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 64523CEF8D
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Tue Nov 03, 2020 10:19 am

Wilmar International (WIL SP)
Earnings To Continue Be Driven by Strong Sales Momentum And Steady Margins


Reiterate BUY on strong earnings and with Wilmar’s market cap currently at almost50% discount to that of its subsidiary, YKA.

Management is not discounting more corporate exercises to unlock value at its subsidiaries.

Despite the special dividend of 6.5 S cents, management had also bought back 18.2m shares. Maintain BUY. Target price: S$5.35.

Source: UOBKH

https://research.uobkayhian.com/content ... 5b34abecad
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Tue Nov 03, 2020 10:59 am

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Wilmar to maintain positive earnings momentum in 4Q20 and 2021

Wilmar’s valuation gap to YKA unlikely to sustain

Special dividend to boost dividend yield to 4%-5%

Maintain BUY with TP of S$5.28

Source: DBS

https://researchwise.dbsvresearch.com/R ... =ficgakhea
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Wed Nov 04, 2020 11:07 am

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3 things to look forward to post YKA listing

We stay positive on Wilmar as plans to pay a final and special dividend of at least S$0.16/share is to be announced in Feb (div yield of 3.8%).

Investors can also look forward to strong 4Q20F earnings, driven by robust crush margins, high CPO price and sugar contributions.

It plans to unlock value potentially via share buyback and/or listing other parts of the group businesses.

Reiterate Add with a lower TP of S$5.45.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... D938D211DB
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