Wilmar 04 (Feb 15 - Dec 25)

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Wilmar International (WIL SP)
Another Value-Unlocking Exercise On The Cards?

Wilmar’s JV in India, AWL is reportedly in the midst of exploring its IPO.

This is not a
surprise and it is positive for Wilmar to unlock shareholder value.

However, the impact may not be as great compared with the listing of YKA as AWL’s contribution is estimated to be less than 3% of total PBT.

Based on a PE of 18x to 20x, it suggests potential listing value of US$1.69b-1.86b. Maintain BUY. Target price: S$6.40.

Source: UOBKH

https://research.uobkayhian.com/content ... 49df858218

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Wilmar International's net profit doubles to US$450.2 mil, highest for 1Q

by Felicia Tan

Wilmar International has reported net profit of US$450.2 ($597.0 million) for the 1QFY2021 ended March, around double the net profit of US$224.1 million in the corresponding period the year before.

The quarter’s net profit is the group’s highest first quarter since its listing.

The group’s core net profit rose 38.1% y-o-y to US$423.7 million.

Revenue for the 1QFY2021 increased by 30.6% y-o-y to US$14.26 billion, while EBITDA improved by 53.7% y-o-y to US$1.09 billion.

Source: The Edge

https://www.theedgesingapore.com/capita ... highest-1q

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Valuation

We used sum-of-the-parts (SOTP) valuation methodology to arrive at a target price (TP) of S$6.67, which implies 21x FY21F PE.

Wilmar should trade at a higher PE multiple on emerging foot print in consumer branded products segment, which helps Wilmar to achieve better margins

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... WIL_SP.xml

[winston]

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1Q21: Above Expectation

Wilmar’s 1Q21 core net profit came in above our expectation on the back of a strong
performance from consumer products and manufacturing margins.

Earnings growth should remain positive with high palm oil and sugar prices.

However, the feed and industrial products segment might come in lower due to lower crush margins.

Wilmar’s operation in India and Myanmar are not affected as they are considered essential food producers. Maintain BUY. Target price: S$6.40.

Our target price is based on 2021F EPS and reflects a blended 26x 2021F PE for China operations and blended 11x PE for non-China operations.

Source: UOBKH

https://research.uobkayhian.com/content ... 98152b3e0e

[winston]

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Wilmar International (WIL SP)
Share Price: SGD5.22
Target Price: SGD6.21

Recommendation: Buy

Good delivery

WIL beat expectations in 1Q21 from mark-to-market reversals and improving operating conditions in China.

Demand conditions rising in its other markets as vaccines progress should provide incremental volume uplift going forward.

But timing of this is uncertain given the resurgence of COVID in India and Indonesia.

Higher inputs costs may temper crushing margins going forward as well as its mid and downstream margins, we believe.

We lower TP to SGD6.21 to reflect this. With 19% upside, BUY

Source: Kim Eng

https://mkefactsettd.maybank-ke.com/PDFS/218935.pdf

[winston]

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WILMAR INTERNATIONAL (WIL SP)

Recommendation : BUY
Fair Value : SGD 6.21

A STRONG QUARTER.

PATMI doubled in 1Q21
Stronger performances across key business segments
Recovery in Medium Pack and Bulk sales volume

Wilmar reported a strong 1Q21 results. Its revenue rose 30.6% YoY to USD14.3b while PATMI jumped 100.9% YoY to USD450.2m due to stronger performances across its key segments.

Core PATMI rose 38.3% to USD423.7m, making up 27% of our full year forecast, broadly in-line with our expectations.

Sales volume for Food Products grew 13.1% YoY on the back of higher Medium Pack and Bulk, and Consumer Products during the quarter, supported by a recovery in hotels/restaurants/catering (HORECA) demand and shift in consumer preference towards better quality food products.

Management expects to see lower crush margins in 2Q21 after a few quarters of good performance due to lower soymeal demand in China.

We understand from the management that Wilmar is the essential food products provider in India, and they have seen little impact from rising infection rates in India on Wilmar’s operations, except for the HORECA demand.

We continue to see Wilmar as a beneficiary of recovery in China, higher CPO and sugar prices, and Indonesia’s B30 program.

After adjustments, our fair value increases slightly from SGD6.16 to SGD6.21.

Source: OCBC

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Wilmar is RHB's top pick as Chinese CPO demand to pick up pace

by Jeffrey Tan

China’s crude palm oil (CPO) imports from Malaysia jumped 30% m-o-m as CPO stock levels decreased 15% y-o-y in May.

SBO is now at a “massive premium” of US$527 a tonne compared to prices of crude palm oil (CPO) of US$373 a tonne, it notes.

Source: The Edge

https://www.theedgesingapore.com/capita ... -pick-pace

[winston]

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Wilmar International (WIL SP)
1H21 Results Preview: Expect Profit To Grow Marginally Yoy

Wilmar is scheduled to report 1H21 results on 11 Aug 21.

Wilmar reported 1Q21 core net profit of US$424m, and we are expecting a core net profit of US$250m-270m for 2Q21 to bring 1H21 core net profit to US$675m-695m vs 1H20’s US$636m.

There is a weaker crushing margin and only 90% of YKA contribution this year.

Maintain BUY. Target price: S$6.40.

Source: UOBKH

https://research.uobkayhian.com/content ... 7c3c64af93

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Things may get worse before they get better for Wilmar but RHB keeps 'buy' call

by Samantha Chiew Pu

Although CPO prices have somewhat recovered recently, plantation share prices have retreated further, which the research team believes is due to ESG concerns.

Supply fundamentals projected for 2022 are improving, with stock/usage ratios for the 17 oils and fats projected to rise to above historical levels in 2022.

On demand, the current high prices will affect demand from price-sensitive countries, while reductions in biofuel mandates globally and rolling Covid-19 lockdowns will continue to have a subduing effect.

Wilmar’s earnings and valuations are heavily skewed towards its consumer products and oilseed feed ingredients businesses in China – which account for a hefty >90% of earnings – which means that its valuation is very inexpensive at present.

Wilmar is trading at 12x 2022F PE, compared with its China-listed peers’ 32-37x.

Shares in Wilmar are trading at $4.38 or 1.0 time FY2021 book value with a dividend yield of 3.0%.

Source: The Edge

https://www.theedgesingapore.com/capita ... s-buy-call

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Singapore's Wilmar International targets S$819m Indian IPO for Adani Wilmar

BENGALURU (REUTERS) - Singaporean agribusiness Wilmar International said on Monday it was pursuing a listing of its joint venture Adani Wilmar in India through an initial public offering worth up to 45,000 million Indian rupees (S$819 million).

Adani Wilmar, a 50-50 joint venture between the company and Indian conglomerate Adani Group, is expected to list on the BSE and the National Stock Exchange.

Adani Wilmar sells kitchen commodities such as edible oil and wheat in India under a diverse range of brands.

Source: Straits Times

https://www.straitstimes.com/business/c ... ani-wilmar