Wilmar 04 (Feb 15 - Dec 25)

[winston]

WILMAR 1H2021 NET PROFIT INCREASES 23% TO US$751 MILLION

1H2021 core net profit increased 15% to US$732 million

Record EBITDA and pre-tax profit from better performance in Feed & Industrial
Products and Plantation & Sugar Milling

Proposed interim tax-exempt dividend of S$0.05 per share, the highest interim
dividend

https://links.sgx.com/FileOpen/Wilmar_1 ... ID=678171d since listing

[winston]

not vested

Wilmar International (WIL SP)
1H21: Results Slightly Above Our Expectations

Wilmar’s 1H21 results came in slightly above our expectations.

The positive variance mainly came from better-than-expected sugar, oilseeds and grains contributions.

2H21 earnings could come in stronger mainly supported by higher production and higher commodity prices for palm and sugar.

Adani Wilmar’s (AWL) potential listing would unlock shareholders’ value; however, it might not be as great as YKA’s listing due to its lower contribution to Wilmar.

Maintain BUY. Target price: S$6.40.

Source: UOBKH

https://research.uobkayhian.com/content ... c1d727e461

[winston]

vested

Wilmar - BUY (Results not as bad as feared)

Wilmar’s reported 1H21 core Patmi of US$732m (+15% YoY) was slightly ahead of expectations, at 49%/46% of CLSA/consensus full-year forecasts.

Interim DPS of S$0.05 (1H20: S$0.04) was declared.

Among its business segments, the expected weakness in crush margins from lower soybean crush volumes and higher input costs was offset by higher refining margins and increased demand from tropical oils products.

On its outlook, management sees its tropical oils and sugar businesses continuing to benefit from favourable commodity prices and was optimistic on the recovery of crush margins through 3Q21.

Source: CLSA

[winston]

vested

RESULTS. Wilmar’s 1H21 came in-line with Street/MKE expectations with PAT of USD751m (up 23% YoY).

2Q21 PAT fell 22% YoY and 33% QoQ, due to weakness in the Food Products segment given rapid rises in input costs.

The Feed & Industrial Products segment saw PBT/ton\improve by 30% YoY from stronger palm oil refining margins.

Oilseeds & Grains volumes fell 11% YoY due to weaker demand.

Management claims crushing margins have bottomed out and improving in 3Q21.

Upstream Plantations segment saw a strong turnaround thanks to higher CPO prices. It turned a profit compared to a loss a year ago.

Volumes were 6% YoY higher. Continued support for CPO prices should keep this momentum secure.

Sugar continues to remain a drag with lower sugar sales.

Interim dividend of SGD0.05 announced (vs. SGD0.04 in 1H20). Slightly better than expected.

Overall, a good result. While high input costs and weak crushing margins had the
potential to pressure overall margins, these have not been as big of a drag as initially feared.

Source: Kim Eng

[winston]

Sequential operating improvements underway

Wilmar’s 1H21 was in-line with Street/MKE expectations.

Higher commodity prices were a double-edge sword.

These supported strong performance in upstream plantations and downstream refining. These segments should remain supported in 2H21, we believe.

On the other hand, consumer margins saw pressure from higher input costs. Weakness
here as well as soybean crushing should ease in 2H21 from better ASPs, we believe.

The stock has de-rated 10% since May and is at a 44% discount to its peer group.

Potential value unlocking and improving margin outlook should be positive catalysts going forward. BUY. target: RM 6.03.

Source: KE

https://mkefactsettd.maybank-ke.com/PDFS/230419.pdf

[winston]

not vested

Wilmar International (WIL SP) - Good set of results

Wilmar’s 1H21 results met our expectations.

Its revenue rose 30.4% YoY to USD29.5b while PATMI grew 23.0% YoY to USD750.9m in 1H21, due to higher sales volume and commodity prices.

An interim dividend of 5 S cents per share was declared which is the highest interim dividend declared since listing.

Total sales volume was up 2% YoY, driven by strong volume growth from medium pack and bulk business as demand from hotels / restaurants /catering (HORECA) recovered.

A firm CPO price in 1H21 benefitted Wilmar’s upstream and refining businesses, but higher input costs weighed on Food Product’s margin which is expected to ease in 2H21.

We expect a stronger 2H21 as margin pressure eases, together with firmer CPO and higher sugar prices, and a recovery in crushing margin.

The potential listing of its 50% owned India JV Adani Wilmar is likely to be another catalyst. We maintain our fair value estimate at SGD6.21. BUY.

Source: OCBC

[winston]

not vested

Emerging catalysts for 2H21F

We see the listing of AWL and better 2H21 results as share price catalysts.

Wilmar said it is exploring various options to unlock value for shareholders.

Reiterate Add. Wilmar’s market cap of US$20.6bn is at a significant discount
to the value of its 90% stake (worth S$55bn) in YKA.

TP: RM 6.15

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 8c9e891c7d

[winston]

vested

Adani Wilmar IPO placed on hold amid Indian probe of Adani Group

by Shruti Srivastava & P R Sanjai

Filed a draft prospectus on Aug 2 for an IPO of 45 billion rupees (US$605 million).

The Securities and Exchange Board of India listed the filing’s processing status as “issuance of observations kept in abeyance,” without providing any specific reasons, in an update posted on its website Friday (Aug 20).

Source: Bloomberg

https://www.theedgemarkets.com/article/ ... dani-group

[winston]

vested

Wilmar International (WIL SP)
Do Not Overlook Its Good Performance

Re-iterate BUY on Wilmar as industry data shows improving operating statistics, which
points to a better 2H21 performance.

Concern on risks from China’s regulatory crackdown is relatively low for the staple food industry which has no risk of monopoly and does not see any excessive price adjustments despite rising raw material prices.

There are some hiccups to Adani-Wilmar Limited’s listing but the overall impact to
Wilmar is marginal.

Maintain BUY. Target price: S$6.40.

Source: UOBKH

https://research.uobkayhian.com/content ... d64f1bc415

[winston]

vested

3 reasons why Wilmar investors’ concerns are misplaced

UOB Kay Hian said there’s nothing much to worry about the hiccup to Adani Wilmar’s listing.

In a recent report dated 7 September, UOBKayHian laid out and addressed three issues relating to Wilmar International Limited, a Singaporean food processing company that is part of the stable food industry.

First concern: "China’s regulatory risk after the recent control on the technology and education sectors."

According to UOB, oilseeds and grains and staple food industries have a relatively low risk because they are not dominated or monopolised by private enterprises.

Wilmar has about 45% market share in consumer pack cooking oils—and cooking oil players are very careful in adjusting the selling price for consumer, packs in order not to hit hard on consumer spending, UOB said.

Second concern: "Weak performance from soybean crushing to persist."

UOB forecasted a better performance in soybean crushing volume and margins in the second half of 2021 on the back of better sales volume and improving crushing margins since mid-July.

Third concern: "Hiccup to AWL’s IPO."

"There is still no update from the Securities and Exchange Board of India on why the initial public offering (IPO) application process is now kept in abeyance and there is very little visibility as to when this will be lifted," UOB said.

AWL’s IPO, UOB noted, has a very marginal impact on Wilmar as profit contribution is less than 3% and IPO proceeds are mainly for debt repayment and the expansion plan in India.

The possible issue that led to this suspension could be linked to the query raised on the foreign portfolio investors in other listed entities of its partner Adani Enterprises Limited.

Source: Singapore Business Review

https://sbr.com.sg/manufacturing/news/3 ... -misplaced