Wilmar 04 (Feb 15 - Dec 24)

Re: Wilmar 04 (Feb 15 - Dec 18)

Postby winston » Mon Feb 26, 2018 11:18 am

Trading at bargain price after prolonged correction

Upgrade to BUY rating with higher TP of S$3.65.

Wilmar’s share price corrected c.25% in 2017 and we believe that it is currently a bargain, trading at 12.1x FY18F P/E (-1SD forward P/E), lower than its five-year average multiple of 14.6x.

Our higher target price is derived from our revised FY18F/19F earnings forecast (by 10%/16%), on better margins outlook in its Oil Seeds and Grains segment supported by soy crushing margins in China.

Improving cost management will also help keep Tropical Oils’ profitability in check.

Our TP offers c.20% upside from the last close of S$3.06 and c.3% dividend yield for
FY18/F.

Source: DBS

https://researchwise.dbsvresearch.com/R ... =dedjikhea
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Re: Wilmar 04 (Feb 15 - Dec 18)

Postby behappyalways » Mon Feb 26, 2018 6:44 pm

Wilmar reports 23.8% decline in 4Q earnings to US$427.5 mil
https://www.theedgesingapore.com/wilmar ... us4275-mil
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Re: Wilmar 04 (Feb 15 - Dec 18)

Postby winston » Tue Feb 27, 2018 9:06 am

More reasons to like the stock

We are more positive on Wilmar post its briefing, with three positive takeaways.

Firstly, the crush margin in China remains strong, which is positive for 1Q18 earnings.

The listing of its China operations is on track and our estimates reveal it could be worth as much as US$16bn, more than Wilmar’s current market cap of US$15bn.

Lastly, the group could pay more dividends following the listing of Wilmar China.

Maintain Add call with an unchanged SOP-based target price of S$4.10

Source: CIMB

https://brokingrfs.cimb.com/cqosAQZsk7l ... VllCw2.pdf
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Re: Wilmar 04 (Feb 15 - Dec 18)

Postby winston » Thu Mar 08, 2018 9:21 am

HPRY Holdings, a company wholly-owned by Mr. Kuok Khoon Hong, has also been acquiring shares in WIL recently – a total of ~3.3m shares at an average of S$3.107/share since late Feb.
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Re: Wilmar 04 (Feb 15 - Dec 18)

Postby behappyalways » Thu Mar 22, 2018 5:16 pm

Wilmar acquires remaining 50% stake in investment holding company from Olam for $195 mil
https://www.theedgesingapore.com/wilmar ... am-195-mil
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Re: Wilmar 04 (Feb 15 - Dec 18)

Postby winston » Fri May 11, 2018 12:49 pm

Wilmar: Cautiously optimistic for rest of the year

Wilmar reported a 5.7% YoY rise in revenue to US$11.2b but saw a 40.6% drop in net profit to US$203.3m in 1Q18 with lower contribution of non-operating items (impacted by marked-to-market losses arising from investment securities), higher selling and distribution expenses (+16% YoY with increased advertising and promotion activities due to later Chinese Spring Festival in 2018) and administrative expenses (+8.5%).

Excluding one-off items such as FV adjustment on available-for-sale financial assets, 1Q18 core pre-tax profit was lower by 20% YoY, and accounted for 21% of our full year estimate, within expectations.

With respect to China’s import tariffs on US soybeans, the group mentioned that a prolonged standoff between China and the US would affect the utilization of its crushing plants, but this will be partially mitigated by better performance from its flour and rice businesses.

Its Tropical Oils segment will likely perform better in subsequent quarters as well.

Source: OCBC
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Re: Wilmar 04 (Feb 15 - Dec 18)

Postby winston » Mon May 14, 2018 10:09 am

not vested

Wilmar: In it for the long term

Wilmar reported a 5.7% YoY rise in revenue to US$11.2b but saw a 40.6% drop in net profit to US$203.3m in 1Q18 with lower contribution of non-operating items (impacted by marked-to-market losses arising from investment securities), higher selling and distribution expenses (+16% YoY) and administrative expenses (+8.5%).

Excluding one-off items such as FV adjustment on AFS financial assets, 1Q18 core pre-tax profit was 21% of our full year estimate, within expectations.

With respect to China’s import tariffs on US soybeans, the group mentioned that a prolonged standoff (if there is one) between China and the US would affect the utilization of its crushing plants, but this will be partially mitigated by better performance from its flour and rice businesses.

The Tropical Oils segment will likely perform better in subsequent quarters as well.

The group’s listing of its China business remains on track, and is likely to happen in mid-2019 or 2H19.

Meanwhile, the group remains on the lookout for acquisition opportunities – JV Adani Wilmar has put in a bid for debt-ridden edible oil firm Ruchi Soya.

Source: OCBC
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Re: Wilmar 04 (Feb 15 - Dec 18)

Postby winston » Fri Jun 08, 2018 9:35 pm

by Trishia Yang

OCBC loans Wilmar US$200m with peg interest rate

Singapore stock market news today is that Wilmar International, an Agri-business player, has inked an arrangement with OCBC bank to peg interest rate on a US$200 million (S$266.7 million) rotating credit office to the borrower's maintainability execution, the organizations said in a joint explanation on Friday, June 8, preceding the market opened.

Financing costs on Wilmar's advance will be decreased on a layered premise if the organization accomplishes its pre-set supportability targets, which are based on ecological, social and administration (ESG) measurements. These objectives will be evaluated yearly by Sustainalytics, a worldwide supplier of ESG research and appraisals.

At the point when reached by The Business Times, Wilmar was not ready to unveil the objectives and loan costs. Be that as it may, a Wilmar representative said that a portion of the supportability pointers to be utilized as a part of the appraisal incorporate the advance of the organization's biodiversity and ozone-depleting substance diminishment programs, sustainable power source utilize, its opportunity of affiliation strategy and ESG administration.

The organizations said that the move expands on the dependable financing rules issued by the Association of Banks in Singapore in 2015 that mean to increase present expectations for the capable and practical fund.

Elaine Lam, head of worldwide corporate managing an account at OCBC Bank, stated: "We anticipate organizing a greater amount of such bespoke financing answers for them, and for our different clients, as we explore the business scene together in a mindful way."

Wilmar CFO Ho Kiam Kong included: "Maintainability is the best need at Wilmar and we are satisfied to have the capacity to exhibit that dependable business practices will prompt reasonable development and lower financing costs."

According to Singapore stock research, Both shares are needed to be watched as the Wilmar shares completed S$0.01 or 0.3 percent bring down at S$3.27, while OCBC shares finished S$0.04 or 0.3 percent higher at S$12.84 on Thursday.0000
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Re: Wilmar 04 (Feb 15 - Dec 18)

Postby winston » Wed Jun 27, 2018 9:23 am

Soft commodities: Contending with greater forces

With 6 Jul nearing the corner (when China plans to impose 25% tariffs on US goods including soybeans), US soybean futures have been volatile.

For Wilmar (WIL), the greater factor determining profitability would be crush margins and utilisation of its soybean plants.

Higher soy product prices may also result in the take up of substitutes such as corn meal, crude palm oil and rapeseed oil.

Performance of WIL’s oilseed crushing business is unlikely to be affected in the short term, but a prolonged standoff between China and the US would impact the utilisation of its crushing plants.

As mentioned in our earlier report (8 Mar 2018), CPO prices are expected to remain lacklustre, and at RM2,283/MT (22 Jun close), the commodity is trading at its lowest since Mar 2016.

Within the sector, WIL [BUY; S$3.51] remains our preferred pick with its more diversified operations, while we would monitor the replanting programme for Golden-Agri Resources [HOLD; S$0.34].

Companies in which Mr. Kuok Khoon Hong, is deemed interested in, have continued to purchase WIL shares – a total of about 8.8m shares at a weighted average of S$3.10/share since late Feb.

Source: OCBC
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Re: Wilmar 04 (Feb 15 - Dec 18)

Postby winston » Wed Jul 04, 2018 12:53 pm

not vested

Wilmar (WIL SP, BUY, TP: SGD3.59)

Opportunity To BUY During Market Uncertainty

Company Update

Reiterate BUY, with TP of SGD3.59 reflecting 18% upside.

We believe Wilmar’s share price has come down on the back of looming uncertainties over the imminent China-US trade war.

However, US soybean prices have also plummeted significantly since the 25% tariff recommendation. This should help to mitigate pressure on its raw material costs, even if the tariff was implemented.

As such, we think the recent retracement in share price offers a good opportunity to accumulate the stock.

Source: RHB
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