Wilmar 04 (Feb 15 - Dec 20)

Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Fri Jul 03, 2020 1:16 pm

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Wilmar's YKA may reach $19.7b valuation in IPO: analyst

YKA is currently backed by strong investor interest, which jacked up its IPO target.

Wilmar International’s 99.99% owned subsidiary Yihai Kerry Arawana Holdings (YKA) could be valued at $19.7b after it gets listed in the Shenzhen Stock Exchange, according to an analyst note from DBS Group Research.

It also noted that this amount is equivalent to 75% of its parent company’s market capitalisation.

“The higher price-to-earnings (PE) multiple for China operation is based on our view that YKA IPO will gain strong interest amongst the investors.

WIL’s share price has performed well in the past few months due to strong 1Q20 results and reaffirmation of its China listing,” said William Simadiputra, analyst at DBS Group Research.

Simadiputra is also confident that Wilmar will be able to withstand China’s economic turbulence caused by the COVID-19 outbreak. Its strong presence in China’s staple food market means that its well-diversified product lines are irreplaceable, despite the current tough environment.

The report added that Wilamr’s growing contribution from its consumer branded products in the food market segment will provide a cushion for its earnings amidst volatile commodity prices.

The company also further noted that the potential of its food business has withstood uncertainties triggered by the US-China trade war, African Swine Fever (ASF) and COVID-19 pandemic.

In Wilmar’s latest YKA prospectus, they may potentially raise $2.8b (RMB13.9b) in the IPO.

“We believe the higher fundraising target is backed by the stronger than expected interest among the investors. This is positive for YKA. It needs to raise more funds to strengthen its position in China’s food market, especially in the oilseeds and grains segment. It also needs a bigger war chest to build up its downstream segments such as branded food products,” Simadiputra commented.

Further, he added that strong interest in YKA also reaffirms that Wilmar’s share price in Singapore is undervalued. Historically, investors still associate Wilmar with palm oil related businesses despite WIL’s continuous expansion beyond palm oil businesses across China.

Other than YKA, Wilmar’s businesses are already deeply discounted even at current share price, Simadiputra said. “This will be more obvious if YKA is listed at a higher than expected multiple, generating a bigger than expected market cap of $28b (assuming 10% of new shares , and $2.8b fund raised target achieved).

This implies that WIL’s current business lines across ASEAN countries and India are fully discounted at its current market cap of around $26b.”

Source: Singapore Business Review

https://sbr.com.sg/agribusiness/news/wi ... po-analyst
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Mon Jul 06, 2020 1:30 pm

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Wilmar Should See Higher Prices After Yihai Kerry Arawana Spin-off

by Alvin Chow

The IPO price has yet to be set but Yihai Kerry Arawana has indicated to use proceeds of ¥13.87bn. This means an approximate IPO price of ¥25.59 but likely to be higher if we add in the listing fees.

This would be a PE of 25x. Wilmar’s PE is about 15x and hence, this spin-off should unlock the value in Yihai Kerry Arawana.

According to Nielsen data, Yihai Kerry Arawana ranked first in the market share of edible vegetable oil, flour and rice in China.

The company also ranks high in the market share of feeds trade and oils and fats industries.


Source: Dr. Wealth

https://www.drwealth.com/wilmar-should- ... -spin-off/
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Wed Jul 29, 2020 11:14 am

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FURTHER UPDATE ON THE PROPOSED LISTING OF WILMAR’S CHINA OPERATIONS IN THE
PEOPLE’S REPUBLIC OF CHINA

Wilmar wishes to announce that YKA has submitted responses to further queries from the
SZSE in relation to its application for the Proposed Listing.

These responses, including certain updated financial information of YKA for the financial
period ended 30 June 2020, have been incorporated in an updated prospectus submitted to
the SZSE for its review and approval.


https://links.sgx.com/FileOpen/Wilmar_a ... eID=625272
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Wed Jul 29, 2020 9:13 pm

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Investment strategy

We maintain our Buy rating on Wilmar shares. We believe higher returns from its
growing consumer business, better oilseeds performance and the recovery in CPO
prices will help generate NPAT growth. We like Wilmar's ability to make attractively priced
strategic acquisitions to drive future growth.

Valuation

We value Wilmar shares at a target price of S$5.15, set at a PER of 17.1x (+0.75 SD above mean on expected higher CPO prices for FY20 and supportive industry conditions) average earnings over a five-year cycle (2018-22E). We normalize earnings due to the typical volatility of a trading company.

Risks

Downside risks that could prevent the stock from reaching our target price include:
1) Trading risks from commodity prices and counterparty risks;
2) A prolonged challenging operating environment for its oilseeds segment; and
3) Slower end demand levels for food & industrial products.

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

Postby winston » Fri Aug 07, 2020 7:48 am

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Wilmar International subsidiary meets listing and disclosure requirements; one step closer to China listing

by Felicia Tan

Wilmar International announced on August 6 evening that its 99.99%-owned subsidiary Yihai Kerry Arawana Holdings Co (YKA) has met the listing and disclosure requirements by the SZSE ChiNext Board Listing Committee.

Following the committee’s decision, YKA will be making a submission to the China Securities Regulatory Commission (CSRC) for final registration approval for listing on the Shenzhen Stock Exchange ChiNext Board.

In a statement released via SGX, Wilmar says there is no certainty that the proposed listing will proceed as it is still subject to final registration approval by CSRC and prevailing market conditions.

Source: The Edge

https://www.theedgesingapore.com/news/c ... s-one-step
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Tue Aug 11, 2020 11:02 am

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Yihai Kerry Arawana (YKA), the Chinese unit of Wilmar International that is pursuing an initial public offering (IPO), expects to post a profit of between four billion yuan (S$788 million) and 4.6 billion yuan for the nine months ended September (9M FY2020).

This would mark a year-on-year increase of between 15 per cent and 30 per cent in YKA’s bottom line, Wilmar disclosed in a bourse filing.

The forecast was newly revealed in YKA’s updated prospectus, which it submitted for final registration approval for its listing bid on the Shenzhen Stock Exchange’s ChiNext Board.

YKA expects its revenue for 9M FY2020 to fall between 131 billion yuan and 137 billion yuan, representing a year-on-year rise of between 5 per cent and 10 per cent.

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

Postby winston » Wed Aug 12, 2020 8:58 am

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What has been priced in for YKA listing?

1H20 results appear to be above expectation due to better crush margins.

We think market has yet to fully price in the potential listing of YKA in 2H20.

Maintain Add with an unchanged SOP-based TP of S$5.53.

We remain positive on Wilmar due to its stellar 1H performance and plans to list YKA. At
its current price, we estimate the implied P/E for YKA is 22x which is below some of its
peers.

As such, we believe there is scope for a re-rating if pricing for the IPO turns out
better than our current expectation.

Other catalysts are potential special dividend post listing of YKA and better-than-expected earnings deliveries.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 1666561D90
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Wed Aug 12, 2020 10:15 am

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Wilmar International (WIL SP, BUY, TP: SGD5.45)

Strong Earnings Growth In China; Maintain BUY


Results Review

Maintain BUY and TP of SGD5.45, 16% upside and c.3% yield.

1H20 results came in ahead of expectations.

Core PATMI of USD635m (+49% YoY) accounted for 53% of Street full year estimates.

All segments delivered stronger numbers, with China driving most of the growth.

A higher interim dividend of 4 cents was declared in line with better profits.

We believe Wilmar International’s share price will remain supported, with the China IPO imminent.

Management also remains positive on the 2H20 outlook.

Source: RHB

https://research.rhbtradesmart.com/view ... 9f96086b02
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby behappyalways » Wed Aug 12, 2020 12:41 pm

Wilmar International 2Q20 earnings more than double y-o-y to US$386.6 mil
https://www.theedgesingapore.com/capita ... us3866-mil
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Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Thu Aug 13, 2020 9:08 am

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China Still The Main Story; Maintain BUY

Company Update

Reiterate BUY, SGD5.45 TP, 14% upside with c.3% FY20F yield.

We maintain our positive view on Wilmar, post its analyst briefing.

With Yihai Kerry’s China listing in its final lap – awaiting approval from China Securities Regulatory Commission – management now expects the IPO to be completed by end-September.

As the market has now, by and large, priced the Yihai Kerry listing at 22-23x PE, we believe the performance of Yihai Kerry post-IPO will create another upside leg for investors.

Source: RHB

https://research.rhbtradesmart.com/view ... c846e8bd98
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