Wilmar 04 (Feb 15 - Dec 24)

Re: Wilmar 04 (Feb 15 - Dec 20)

Postby winston » Wed Nov 04, 2020 2:33 pm

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Wilmar International (WIL SP) - Record 3Q results

Wilmar’s 3Q20 results came in above ours and market expectations.

3Q20 revenue rose 19.3% YoY to US$13.3b while PATMI grew 20.0% YoY to US$536.6m.

Wilmar announced that a special dividend of approximately 15% of the total IPO proceeds i.e. US$0.31b will be declared in 2021.

Management guided that the final dividend for FY20 will be no less than 16.0 S cents per share, including the special dividend of 6.5 S cents, backed by Wilmar’s strong performance and sees a ‘fair chance’ for a record earnings this year.

We believe that the valuation gap between Wilmar and YKA is too large and Wilmar’s business is undervalued.

We are expecting a strong 4Q given the continued recovery in CPO and sugar prices, improved crushed activities, and economic recovery as lockdown measures eased in most of the regions where the Group operates.

We believe that the listing of YKA could provide long-term benefits to Wilmar as it allows Wilmar to penetrate further and grow at a faster pace in China and the valuation gap is likely to be lifted over time with sustained YKA’s valuations.

Our fair value estimate remains at S$5.40. BUY.

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

Postby winston » Mon Nov 09, 2020 9:41 am

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Wilmar buys back 20 million shares, chairman increases stake.

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

Postby winston » Wed Jan 06, 2021 1:38 pm

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RE-ITERATE Wilmar International (WIL SP) Entry – 4.89 Target – 5.36 Stop Loss – 4.68

Share price is about to break the previous high that was set in early August 2020.

Crude palm oil price broke the 8-year high of RM3,628/tonne, now trading at RM3,670/tonne.

Yihai Kerry, that subsidiary that was spun-off last year and listed in China, is now trading at record highs with a market cap of RMB657bn (equivalent to S$134bn).

Wilmar owns 89.99% of Yihai Kerry. Wilmar’s market cap is S$29.5bn.

Technically, RSI shows a positive upward momentum.

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

Postby winston » Thu Jan 07, 2021 4:24 pm

RHB raises Wilmar's TP to $6 as the group rides on CPO price uptrend

by Felicia Tan

“If Yihai Kerry Arawana’s post-listing share price performance and special dividends are not enough to lift Wilmar's share price, then strong commodities prices and rising margins are here to give it another booster shot in 2021”.


Wilmar’s upstream oil palm business would stand to gain on rising margins, since its cost of production is stable at about US$400 ($527.13) per tonne.

“Although its Indonesian plantations would have a lower realised CPO price as a result of the export levy, it is still enough for bountiful profits.”

Wilmar is also in a position to take advantage of Indonesia’s export levy structure.

The Indonesian government has set the reference price for CPO at US$951.86 per tonne for January.

At this price, CPO exports from the country will incur tariffs of US$224 per tonne.
Together with an export tax of US$74 per tonne, this means that upstream plantation players would receive a discount of as much as US$299 per tonne for CPO sales in January, boding well for Wilmar, being the largest palm oil processor in Indonesia.


Source: The Edge

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

Postby winston » Wed Jan 13, 2021 10:27 am

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Wilmar International (WIL SP)
All Engines Firing To Deliver Good Earnings


We raise our 4Q20 core net profit forecast to US$350m-380m on
better-than-expected contribution from YKA.

Recent share price performance was driven by better earnings outlook and the
strong rally in YKA’s share price, which has appreciated 370% from its IPO price
of Rmb25.70 since listing on 15 Oct 20.

Maintain BUY and raise target price to S$6.40.

Source: UOBKH

https://research.uobkayhian.com/content ... 147e0729da
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Re: Wilmar 04 (Feb 15 - Dec 21)

Postby winston » Thu Jan 14, 2021 9:28 am

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Wilmar International (WIL SP)

Share Price: SGD5.08
Target Price: SGD6.80
Recommendation: Buy

Strengthening momentum

We see four areas where WIL can potentially surprise in 4Q20:
1. Record soybean crush margins
2. Rising palm oil prices
3. Normalising activities in China and
4. Margin accretive Indonesian export taxes.

Yet it is trading at a 75% discount to YKA.

We believe, over the longer term, this may trigger further actions to unlock value such as asset carve outs or even privatisation.

While WIL has re-rated 21% in the past 1-month, we believe significant upside exists as they execute. Raise TP to SGD6.80. BUY.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/2 ... b8ba27.pdf
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Re: Wilmar 04 (Feb 15 - Dec 21)

Postby winston » Thu Jan 21, 2021 10:26 am

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What’s New

Wilmar to benefit from the success of its well established brand, and after a decade of investments in its distribution channels and production facilities

Hence, we believe that Wilmar deserves higher a valuation multiple than its CPO plantation peers

Raise FY21-22F earnings by 7% on stronger topline growth and profitability

Lift TP to S$6.67, maintain BUY

Key Risks to Our View:

Worse-than-expected second wave of COVID-19 could lead to global recession. Worse-than-expected fatality rates caused by COVID-19 may lead to a more severe impact on
China’s economy and affect Wilmar’s operations in China.

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fjiickhfj
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Re: Wilmar 04 (Feb 15 - Dec 21)

Postby winston » Wed Feb 03, 2021 10:54 am

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Wilmar International (SGX: F34) upside has exceeded our target price 2 based on
our report on 6th November 2020.

Despite a strong run up, we expect Wilmar to continue its rally based on the technical price action and the wave analysis

1. Wilmar has finish its extended sub-wave (iii) since breaking away from the larger
corrective flat in November 2020.

2. Since meeting its suppose wave 5 target at 161.8% extension of wave 4, the
minor sell down is classified as a correction as first, the morning star formation
has broken out of the bullish flag formation, indicating a strong bullish
continuation ahead. Also, the 2nd candle of the morning star is supported by the
22-day moving average.

3. The 22-day moving average has crosses above the 50-day moving average and
formed a short term golden cross. Besides that, the stock is trending above all 3
moving averages.

4. RSI indicate a possible failed negative failure swing after RSI shows strong
rebound from the RSI 60 line. Should it once again crosses above the oversold
line at 70, prices will resume its upside.

Source: Phillips

http://internetfileserver.phillip.com.s ... Wilmar.pdf
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Re: Wilmar 04 (Feb 15 - Dec 21)

Postby winston » Tue Feb 23, 2021 7:58 am

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Wilmar sweetens full-year dividend to record 19.5 S cents as earnings surge 19%

by SHARANYA PILLAI

AGRIBUSINESS Wilmar International is set to hand out its highest-ever total cash dividend since listing, at S$0.195 per share for FY2020, amid a 18.6 per cent lift in full-year earnings disclosed on Monday after trading hours.

The mainboard-listed firm has proposed a special dividend of S$0.065 and final dividend of S$0.09 per share for the half-year ended December. Its interim dividend in August was S$0.04 cents per share.

Wilmar's sweetener for shareholders comes as its net profit for FY2020 surged 18.6 per cent to US$1.53 billion, on the back of a 18.5 per cent rise in revenue to US$50.5 billion, driven by growth across all segments.

Excluding gains from non-operating items and fair value changes of biological assets, Wilmar's core net profit for FY2020 improved 18 per cent to US$1.49 billion.

H2 net profit rose more modestly by 4.3 per cent to US$923.6 million, while its revenue grew 24.3 per cent to US$27.9 billion.

The H2 showing was dampened by the feed and industrial products segment, which saw mark-to-market losses on hedging derivatives in Q4. However, Wilmar said that these losses will reverse in the coming quarters.

H2 net profit was also hit by higher tax expenses and higher allocation of profit to non-controlling interests. The latter arose from the 10 per cent dilution of Wilmar's interest in Yihai Kerry Arawana Holdings (YKA), which listed in Shenzhen in October last year.

Nevertheless, the firm enjoyed robust revenue expansion in H2 due to strong volume growth, firmer commodity prices and the results consolidation of food manufacturer Goodman Fielder.

The food products segment had a 16 per cent pre-tax profit rise to US$657.4 million in H2, thanks to strong sales volume growth and better margins in the oil, flour and sugar businesses.

Wilmar also enjoyed a "sharp recovery" in volume for its medium pack and bulk products from the hotel, restaurant and catering sector, as China recovered from Covid-19.

For FY2020, the food products segment posted an 18 per cent rise in profit to US$1.15 billion. Consumer products sales volume grew 22 per cent to 9.4 million MT, while medium pack and bulk sales increased 7 per cent to 17.8 million MT, aided by increased brand awareness.

However, the feed and industrial product segment, which includes tropical oils, oilseed and grains and sugar, saw a 5 per cent slide in pre-tax profit to US$425.1 million for H2, arising from the mark-to-market losses. Nevertheless, crushing volumes and margins were healthy, thanks to a recovery in hog production in China, lifting demand for animal feeds.

The segment's profit rose by 26 per cent to US$795.9 million for FY2020, on the back of strong oilseeds crushing in H1. Segment volume rose 11 per cent to 58.1 million MT for the full-year.

Wilmar also had upbeat results in its plantation and sugar milling business, where pre-tax profit for H2 tripled to US$187.8 million, benefiting from firmer palm and sugar prices. Production yield for palm plantations increased by 4 per cent due to favourable weather conditions, while total fresh fruit bunches production rose 5 per cent.

For the full year, the plantation and sugar milling business posted a profit of US$104.8 million, turning around a loss of US$41.3 million in the previous year. However, this was partly offset by a US$20 million impairment of sugar milling assets in India in H1.

Beyond its core verticals, Wilmar also recorded a pre-tax profit of US$100.7 million in other mark-to-market gains and investment income from its portfolio. Its joint ventures and associates improved their contributions by 7 per cent to US$118.1 million in H2, mainly due to better results from investments in Africa and Asia.

"We are continuing to build, especially in China, more integrated plants in new locations and develop new high growth and complementary businesses like central kitchen, soy sauce, vinegar and yeast. This will widen our range of food product offerings and help us reduce manufacturing, distribution and marketing costs," he said.

Source: THE BUSINESS TIMES

https://www.businesstimes.com.sg/compan ... s-surge-19
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Re: Wilmar 04 (Feb 15 - Dec 21)

Postby winston » Tue Feb 23, 2021 9:33 am

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Special dividends make up for weaker 4Q

Wilmar’s final results were 5% below our forecast due to higher taxes.

Positive on strong final and special dividend of S$0.155 (div yield 2.8%).

The value of its stake in YKA is worth 3.1x Wilmar’s current market cap.
Reiterate Add, with a higher SOP-based TP of S$6.15.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... d65be29baf
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