Wilmar 04 (Feb 15 - Dec 25)

[winston]

vested

Wilmar International (WIL SP): <Result Analysis> Core earnings reached US$1.8bn (+24% y-o-y) in 2021 , beating our expectations [BUY, TP S$6.67]

2021’s core earnings reached US$1.8bn (+24% y-o-y), beating our estimates

Vegetable oil refining division was the strongest performer last year

Maintain BUY rating with TP of S$6.67

Source: DBS

[winston]

vested

Wilmar International - 2021: Another record earnings year; results beat expectation.
(WIL SP/BUY/S$4.62/Target: S$6.00)

Wilmar’s 2021 core net profit come in way above our and consensus expectations, thanks to extremely strong earnings from its palm-related businesses.

Having said that, food products and soybean crushing operations, were affected by the high raw material cost and lower crushing margins and volume.

We reckon that both of this segments would still be impacted in 2022, but this would be fully offset by another year of strong performance from its palm operations.

Maintain BUY. Target price: S$6.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 932d79cb9a

[winston]

vested

Mixed signals on its FY22F prospects

We sense that 1Q22F earnings are likely to be lower qoq and yoy due to lower crush and food product profit margins as well as seasonal factors.

The stock remains undervalued on all key valuation metrics. Reiterate Add.

Target 5.69

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... F524BDDA1A

[winston]

Wilmar International (WIL SP)
Palm Continues To Be the Driver, While China Operations Still Challenging

After the analyst briefing, we are of the view that operations in China will remain
challenging, while high palm oil and sugar prices will continue to drive the
performance of these two segments.

With that, we have lowered our earnings estimates for food products but raised our profit estimates for palm-related operations to factor in the current high prices.

Maintain BUY with a lower target price of S$5.50.

Source: UOBKH

https://research.uobkayhian.com/content ... 0dc2dfb566

[winston]

vested

Wilmar International (WIL SP) - Good ending to FY21

Wilmar’s 2H21 revenue rose 30.1% YoY to USD36.3b.

Core PATMI rose 30.5% YoY to USD1.1b in 2H21 while full year core PATMI grew 24.0% YoY to USD1.8b, broadly in-line with our expectations.

Despite higher revenue for Food Products, PBT fell 41% YoY to USD680.9m in FY21 due to margin pressure.

However, this could be partly offset by higher sales volume as Wilmar expands its plants and into central kitchen businesses in China.

Feed and Industrial Products did well, benefiting from good refining margins, stronger demand for midstream tropical oils products, and higher contributions from sugar merchandising activities in FY21.

However, soybean crushing margins were under pressure in 2H21 due to higher soybean prices and weak hog farming margins in China.

Separately, performance of Plantation and Sugar milling was boosted by higher palm oil and sugar prices.

Looking ahead, soybean crushing margin is likely to remain challenging in the near-term but could be helped with the Chinese government releasing its soybean reserves to increase soybean volume.

While we think the margin pressure for Wilmar’s downstream business is likely to remain and takes time to ease, we see operational synergies and cost efficiencies from Wilmar’s integrated business model.

After adjustments, we lower our fair value from SGD6.00 to SGD5.95. BUY.

Source: OCBC

[winston]

vested

Catching up
Trailing behind peers. This gap should close

Wilmar’s scale and diversification makes it amongst the most geared to benefit from the current commodity cycle.

Bad weather, supply chain bottlenecks and the Russia-Ukraine conflict puts earnings upgrade risks on the upside, in our view.

However, the Group is still trading at a discount to its parts as well as lagging peers.

We think these gaps should close as earnings delivery rolls in.

Raise TP to SGD6.56. Maintain BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/254821.pdf

[winston]

vested

Wilmar International (WIL SP)
Slowly Sailing Through High Volatility Market

Being an integrated agribusiness company, high commodity prices are positive yet also
negative to Wilmar.

It is very clear that upstream will be a winner, while mid-to downstream would be dependent on cost control, efficiency and timely purchase of raw materials.

Wilmar has delivered strong performance for 2020 and 2021;

2022 profit could be lower but it will still be the outperformer among the integrated agribusiness companies.

Maintain BUY. Target price: S$5.50.

Source: UOBKH

https://research.uobkayhian.com/content ... d1d67a2838

[winston]

vested

Wilmar will still be an outperformer in 2022, UOB KH and RHB maintains 'buy'

by Khairani Afifi Noordin

Wilmar’s upstream operation of plantations and sugar milling, which accounts for 20% of its 2021 profit before tax (PBT), is expected to perform well given high crude palm oil (CPO) and sugar prices.

Meanwhile, its midstream operation of feed and industrial — which accounts for 46% of its 2021 PBT — will see good earnings from palm oil and sugar refining.

This will offset the weakness in China’s soybean crushing operation which is facing low crushing margins and crushing volumes.

Food products segment, which accounts for 25% of its 2021 PBT, may continue to see a margin squeeze as increases in raw materials costs are not fully priced in, especially for household products.

Source: The Edge

https://www.theedgesingapore.com/news/b ... ntains-buy

[winston]

vested

Wilmar International (WIL SP): Strong margin outlook [BUY, TP: S$6.67]

Raised FY22F earnings by 16% to US$1.89bn

Expect Wilmar’s upstream-mid stream division to stay profitable

Wilmar deserves to trade at a premium to peers’ PE

Maintain BUY with TP of S$6.67

Source: DBS

[winston]

vested

Wilmar International (WIL SP)
Accelerating The Construction Of Central Kitchen Food Park In China

Wilmar sees great potential in the central kitchen business which is a good complementary business to its agri-based food ingredient products.

The first Central Kitchen Food Park in Hangzhou is in the trial production stage.

While consumer packs and soybean crushing in China remain challenging, palm and sugar operations should be able to partly mitigate this weakness.

Both palm and sugar operations are enjoying good ASPs and processing margins.

Maintain BUY. Target price: S$5.50.

Source: UOBKH

https://research.uobkayhian.com/content ... f2a9884447