Wilmar 04 (Feb 15 - Dec 25)

[winston]

vested

A longer wait; D/G to HOLD
Weaker growth & prices may pressure vols & margins

Wilmar’s 1H22 PAT (excluding one-offs) beat Street and was in-line with MIBG.

Growth was primarily driven by higher upstream palm oil prices, where downside risks
to ASPs are increasing.

Concurrently, downstream demand and margin recovery may take longer in a backdrop of recession and prolonged Chinese lockdowns.

We lower TP to SGD4.47 from SGD6.56 and downgrade to HOLD.

We see limited near-term catalysts for re-rating.

Prefer BAL for stronger growth, valuations and yield.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/273095.pdf

[winston]

vested

WILMAR INTERNATIONAL (WIL SP)

Recommendation : BUY
Fair Value : SGD 5.23

A STRONG QUARTER.

Record 1H22 net profit of USD1.2b
Improvement across key segments
An interim dividend of 6 Singapore cents per share was declared

Wilmar’s 1H22 revenue rose 22.3% year-on-year (YoY) to USD36.1b, driven by higher commodity prices and stronger performances across its key segments.

Core PATMI (excluding non-operating items) and PATMI rose 57.8% and 55.1% YoY to USD1.2b in 1H22, above ours and street’s forecasts.

Despite the headwinds from a high volatile commodity market, palm oil related government policies in Indonesia, and lockdowns in China, 2Q22 PATMI came in strong at USD634.6m (+19.7% quarter-on-quarter, QoQ, or ~doubled YoY), underscoring Wilmar’s operational synergies from its diversified and integrated business model.

Looking into 2H22, management expects the recent corrections in commodity prices to help restore some of the demand destroyed by high prices and further improve the downstream margins.

Moreover, management sees limited impact of lockdowns in China on its operations given its well distributed nationwide plants in China.

Source: OCBC

[winston]

Wilmar International (WIL SP)
Good Performance Despite Volatile Agri-Market

Wilmar’s 1H22 core net profit was a huge positive surprise, and was also a record-high
profit for 1H.

We raise our 2022 earnings forecast by 12% to a net core profit of US$1.8b
(-3% yoy) to factor in stronger-than-expected 1H22 PBT margins across all three
segments.

Despite this upward revision, we deem our earnings estimate for 2022
relatively conservative because 2H is usually the stronger half of the year.

Maintain BUY. Target price: S$5.50.

Source: UOBKH

https://research.uobkayhian.com/content ... 64396a1f59

[winston]

vested

Wilmar International (WIL SP) - A strong quarter

Wilmar’s 1H22 revenue rose 22.3% year-on-year (YoY) to USD36.1b, driven by higher commodity prices and stronger performances across its key segments.

Core PATMI (excluding non-operating items) and PATMI rose 57.8% and 55.1% YoY to USD1.2b in 1H22, above ours and street’s forecasts.

Despite the headwinds from a high volatile commodity market, palm oil related government policies in Indonesia, and lockdowns in China, 2Q22 PATMI came in strong at USD634.6m (+19.7% quarter-on-quarter, QoQ, or ~doubled YoY), underscoring Wilmar’s operational synergies from its diversified and integrated business model.

Looking into 2H22, management expects the recent corrections in commodity prices to help restore some of the demand destroyed by high prices and further improve the downstream margins.

Moreover, management sees limited impact of lockdowns in China on its operations given its well distributed nationwide plants in China. BUY.

Source: OCBC

[winston]

vested

Wilmar International (WIL SP)
3Q22 Results Preview: Another Potentially Good Quarter

Wilmar is scheduled to release its 3Q22 Executive Financial Summary on 28 Oct 22.

Based on our current estimates, we expect Wilmar to report a core net profit of
US$470m-490m for 3Q22 (3Q21: US$576m; 2Q22: US$477m).

However, the industry trends that we observed for 3Q22 could signal stronger earnings, which could come within US$530m-550m supported by better-than-expected margins from palm oil downstream and soybean crushing.

Maintain BUY. Target price: S$5.50.

Source: UOBKH

https://research.uobkayhian.com/content ... fae5bcee58

[winston]

vested

3Q22 results could beat expectations

Wilmar’s earnings likely stayed strong in 3Q22, beating Bloomberg consensus core net profit forecast of US$445m.

Higher food product margins, relaxation of CPO export policy are key drivers.

A good set of 3Q results, plans to unlock undervalued assets, and 5.8% dividend yields are key catalysts.

Reiterate Add, with a lower TP of S$4.68.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... B8E0F115A7

[winston]

Analysts keep 'buy' calls for Wilmar ahead of its 3Q results; CGS-CIMB lowers TP to $4.68

by Bryan Wu

3Q has traditionally been Wilmar’s best earnings quarter, driven by festive demand and seasonally higher palm oil output. Also, sugar profit contribution kicks in during 3Q as June to November is the crushing season for sugar cane in Australia.

Wilmar’s share price has declined 15% year-to-date (ytd) despite strong 1HFY2022 earnings. We attribute this partly to concerns over rising interest rates, the strong USD, weaker commodity prices and geopolitical risks.

Wilmar’s operations in China are likely to beat expectations due to: better crushing margins, although the margins will not be as high as the last two years, and higher sales volume for consumer packs and soybean meals.

Sugar may not perform well as the crushing season in Queensland was delayed by heavy rainfall.

Source: The Edge

https://www.theedgesingapore.com/capita ... ers-tp-468

[winston]

vested

Wilmar profit rises about 35% on core business performance

The group had reported strong earnings for the first half on the back of robust demand from China, which accounted for half of its total revenue.

Source: Reuters

https://www.theedgemarkets.com/article/ ... erformance

[winston]

vested

3Q Results

Revenue: +10% yoy
Net profit: +35% yoy

https://links.sgx.com/FileOpen/WIL_3Q20 ... eID=735780

[winston]

vested

Wilmar International on Friday (Oct 28) posted a net profit of US$766.2 million, up 34.7 per cent from a year ago, for the third quarter ended Sep 30.

Revenue increased 10.2 per cent to US$18.9 billion on the back of better sales across the group’s feed and industrial products, and food products businesses.

The feed and industrial products segment saw an 8.5 per cent rise in sales volume, mainly driven by a 12.7 per cent increase in sales for oilseeds and grains, and 12.1 per cent increase in sales for sugar.

The food products segment posted 3.2 per cent growth in sales volume, dragged down by a 2.8 per cent dip in consumer products sales.

Net profit for the nine months ended September was US$1.9 billion, up 46.3 per cent from a year ago. Operating cash flow jumped 68.2 per cent in Q3 to US$3.5 billion, taking into account the recent decline in commodity prices and hence lower net working capital requirements.

Source: Phillips