Wilmar 04 (Feb 15 - Dec 25)

[winston]

vested

b]Wilmar India JV's IPO back in motion[/b]

In a market announcement on Sept 27, Wilmar notes that the processing status of the JV, Adani Wilmar, as shown on the website of the Securities and Exchange Board of India, has been changed to “under process”.

Source: The Edge Singapore

https://www.theedgemarkets.com/article/ ... ack-motion

[winston]

vested

Wilmar International – BUY

Benefitting from increase in soymeal price.

The impact from China’s temporary electricity curbs should not be great and thus we believe that the impact on Wilmar soybean-crushing plants will be very marginal.

However the electricity curbs has led to operational shutdowns resulting in an increase in soymeal prices, which will boost soybean crushing margins.

On our estimates, Wilmar will benefit from better margins and possibly higher sales volume, as supplies from some peers are being affected by the temporary shutdown.


Unlocking shareholder value.

Adani Wilmar Limited (AWL) has submitted the draft prospectus for the listing on the National Stock Exchange of India (NSE). The listing application is now back to “under process” on 24 Sep 21 before some hiccups where this application was kept “in abeyance” by the Securities and Exchange Board of India (SEBI).

AWL’s IPO will unlock shareholder value for Wilmar, with the IPO proceeds mainly used
to fund AWL’s expansion of its product range. In our view, this will eventually mirror the business model in China.

Share Price Catalysts

Events:
a) 3Q21 results by end Oct-21 where we expect better qoq performance due to
the recovery of China’s soybean crushing operations and also better consumer-pack
sales, and
b) higher profit contribution from sugar business will start in 3Q21. However
we highlight that net profit could be slightly lower yoy as 3Q20 was an exceptionally
strong quarter from China, driven by higher soybean crushing and tropical oil margins.

Timeline: 2-4 months.

Source: UOBKH

[winston]

vested

Wilmar International (WIL SP)
3Q21 Preview: Better Contributions From Up-Midstream Operations

Wilmar is scheduled to release its 3Q21 financial summary on 29 Oct 21.

We are expecting a core net profit of US$450m-480m.

Better performance is expected to come from plantation & sugar mills and feed & industrial products to offset the weaker margins of consumer products.

Its 3Q21 performance is expected to be driven by higher ASP for CPO and sugar, and better soybean crushing margin in China. Maintain BUY. Target price: S$6.40.

Source: UOBKH

https://research.uobkayhian.com/content ... 54fce67d84

[behappyalways]

Wilmar reports 3QFY2021 earnings of US$568.7 mil, up 6% y-o-y
https://www.theedgesingapore.com/capita ... il-6-y-o-y

[winston]

vested

Highest 3Q core net profit since listing

Wilmar’s 9M21 core net profit surpassed expectations at 82%/81% of our/consensus full-year estimates due to stronger processing margins.

9M21 net profit grew 15% yoy, thanks to better earnings from the feed and industrial as well as plantation and sugar milling segments.

Reiterate Add as we like Wilmar for its attractive valuations (FY21 P/E of 13x,
div yields of 3.5%) and plans to list 50%-owned Adani Wilmar.

TP: RM 6.15

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 8f7ece31ef

[winston]

not vested

Wilmar (WIL SP): <Result Analysis> Another solid quarter [BUY, TP S$6.67]

3Q21 core net profit beating our and consensus expectation

Wilmar performed well amid the high raw material prices

Maintain BUY with TP of S$6.67

Source: DBS

[winston]

vested

Wilmar International (WIL SP)
3Q21: Record Quarterly Profit; Above Expectation

Wilmar reported 3Q21 core net profit of US$576.4m (+15% yoy).

Results came in above expectation and the positive variance came mainly from its palm-related business.

Contribution from Yihai Kerry Arawan (YKA) declined yoy in 3Q21 mainly due to the
weaker soybean crushing operation compared with the strong 3Q20 while consumer
packs also suffered from lower margins as YKA was unable to fully price in the surge in
raw materials cost to its selling price.

Maintain BUY. Target price: S$6.40.

Source: UOBKH

https://research.uobkayhian.com/content ... 63c75aea2f

[winston]

vested

Common prosperity winner?
Catalysts lining up for re-rating

WIL has de-rated 21% from its peak this year on concerns of weak crush margins, and higher raw material costs.

There are clear signs of turnaround in 3Q21, which should set the Group up to deliver in 2022E.

Structurally, WIL should be a beneficiary of China’s common prosperity drive, while regional re-opening could boost volumes.

Potential restructuring, special dividends and share buybacks are catalysts going
forward. Maintain BUY with new SGD5.80 TP.

Source: KE

https://mkefactsettd.maybank-ke.com/PDFS/239543.pdf

[winston]

Wilmar International (WIL SP)
On Track For A Record Profit Year

We remain positive on Wilmar post-briefing. Wilmar is well on track to deliver a record
net core profit for 2021 since its listing.

Palm and sugar businesses will do well as margins remain good in 4Q21.

China operations are showing improvement but remain challenging.

Lower target price to S$6.00 from S$6.40 after rolling over to 2022F EPS and lower PE valuation for its China operation. Maintain BUY.

Source: UOBKH

https://research.uobkayhian.com/content ... 7c913cb60a

[winston]

vested

WILMAR INTERNATIONAL (WIL SP)

Recommendation : BUY
Fair Value : SGD 6.00


GOOD RESULTS BUT MARGIN PRESSURE REMAINED

3Q21 net profit rose 6% YoY
Margin pressure weighed on Food Products
Soybean crushing margin improved

Wilmar’s 3Q21 results beat expectations.

Its revenue rose 28.7% YoY to USD17.1b while net profit was up 6% YoY to USD568.7m, driven by strong contributions from the Feed and Industrial Products and Plantation and Sugar Milling segments.

On the other hand, Food Products segment continued to be impacted by higher raw material costs in 3Q21. This was also reflected in YKA’s weak 3Q21 results which saw net profit declining by 66% YoY to CNY711m, due partly to higher input costs.

Looking ahead, we expect soybean crushing margin to continue to improve, margin pressure to ease and CPO and sugar prices to remain firm.

Wilmar will remain focused on unlocking values for investors. Some potential options which management mentioned they may consider including share buy-backs and listing of other parts of the group.

After adjustments, we lower our fair value from SGD6.21 to SGD6.00.

Source: OCBC