Wilmar 04 (Feb 15 - Dec 25)

[winston]

vested

Third consecutive quarter of record net profit

Wilmar’s 3Q22 CNP above due to higher associates and lower tax rate.

We expect Wilmar to post a lower CNP of US$400m in 4Q22F, pre-briefing.

Wilmar is on track to post record earnings for the second consecutive year in
2022F. Reiterate Add, stock offers 30% upside to our SOP-based TP of Sin$4.68

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 0E17505E0A

[winston]

vested

Wilmar International (WIL SP)
3Q22: Record Quarterly Profit; Way Above Expectation

Wilmar reported 3Q22 core net profit of US$797m (+38% yoy, +67% qoq).

Results were way above expectation, driven by stronger-than-expected contributions from tropical oil.

YKA’s performance in 3Q22 was below expectation where we suspect the negative
variance came from lower-than-expected margins from its food products and soybean
crushing.

4Q22 is likely to be another good profit quarter, thus we adjusted our 2022
earnings forecast up by 24%.

Maintain BUY. Target price: S$5.50.

Source: UOBKH

https://research.uobkayhian.com/content ... 670d2932de

[winston]

Wilmar International (WIL SP)
Potential Third Year Of Record-high Earnings

Wilmar is on track for a third consecutive year of record-high profit in 2022.

We make no changes to our assumptions on the seasonally weaker 4Q earnings.

The tropical oil segment may see lower margins in 4Q22, but this could be partly mitigated by the recovery in soybean crushing margins in China.

The food products segment will be driven by higher sales volume with marginal qoq recovery in margins as raw material costs could soften slightly.

Maintain BUY with target price of S$5.50.

Source: UOBKH

https://research.uobkayhian.com/content ... 7476b7befa

[winston]

vested

Wilmar International (WIL SP, BUY, TP: SGD5.40)
9M22 Surpasses All Historical Full-Year Earnings

Results Review

Still BUY, with new SGD5.40 TP from SGD4.95, 39% upside and c.5% FY23F yield.

9M22 earnings surpassed expectations, at 102-104% of forecasts.

Wilmar International remains severely undervalued – trading at 7.9x 2023F P/E, especially as its combined stake in Yihai-Kerry and Adani Wilmar is almost double the value of its own market capitalisation.

Source: RHB

[winston]

vested

A harder environment
3Q could be hard to repeat. Maintain HOLD

WIL’s 3Q22 NPAT strongly beat Street and MIBG expectations.

Lower effective tax and higher JV/associate contributions were key drivers here.

Operationally, slower economic growth in China, prolonged lockdowns and a recessionary global environment are critical headwinds for margin and
volume expansion going forward, in our view.

We see the rising cost of risk delaying catalysts for closing the valuation gap between WIL and its parts listed elsewhere.

Lower TP to SGD4.27. Maintain HOLD.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/286564.pdf

[winston]

vested

WILMAR INTERNATIONAL (WIL SP)

Recommendation : BUY
Fair Value : SGD 4.68

GOOD SET OF RESULTS.

Navigating through the headwinds
Third consecutive record quarter results
Expecting better crushing margin in 4Q22

Despite headwinds from weaker consumer sentiment, the prolonged zero-Covid policy in China and lower crude palm oil (CPO) prices, Wilmar’s 3Q22 results beat expectations.

Its revenue rose 10.2% year-on-year (YoY) to USD18.9b while net profit was up 34.7% YoY to USD766.2m.

Consumer products business in China improved in 3Q22, benefiting from lower raw material costs and higher selling prices as Wilmar made upward price adjustments in the earlier quarters amid cost pressure.

Management guided for better crushing margins in 4Q22 given higher hog prices in China, potentially supporting for better performance for Yihai Kerry Arawana (YKA).

We lower our fair value estimate from SGD5.23 to SGD4.68 after applying lower target multiples to our model to reflect a weaker economic growth outlook and lower CPO prices.

Wilmar is trading at undemanding valuations. We remain positive on Wilmar’s earnings prospects given its strong market share, well distributed nationwide plants and integrated business model which will provide operational synergies and cost efficiencies.

Source: OCBC

[winston]

not vested

Wilmar posts record earnings of US$2.4 bil in FY2022, declares record dividends of 17 cents

by Samantha Chiew

Wilmar International F34 0.00% announced record earnings of US$2.4 billion ($3.2 billion) for FY2022 ended December 2022. This represents a 27.1% growth from US$1.9 billion in FY2021.

Revenue gaining 11.6% y-o-y to US$73.4 billion from US$66.8 billion a year ago.

FY2023 will be challenging as plantation profits and palm processing margins are expected to be under pressure but China should perform better due to the ending of its zero-Covid policy.

Source: The Edge

https://www.theedgesingapore.com/capita ... s-17-cents

[winston]

not vested

Wilmar International (WIL SP) - Good ending to 2022

Wilmar’s 2H22 revenue rose 2.8% year-on-year (YoY) to USD37.3b, due to higher contribution from the Feed and Industrial Products, and the Plantation and Sugar Milling segments, but partly offset by lower revenue from the Food Products segment.

2H22 PATMI and core PATMI rose 8.6% and 13.9% YoY to USD1.2b and USD1.3b respectively.

A final dividend of 11 Singapore cents per share was declared, bringing the total dividend for FY22 to 17 Singapore cents per share (+9.7% YoY).

Despite headwinds from the volatility in the commodities markets, sporadic lockdowns in China, economic slowdown, palm oil export ban in Indonesia and inflationary pressure, 2022 was a record year for Wilmar.

The group benefitted from higher palm oil and sugar prices, lower effective tax rate as well as higher freight rates in 2022.

In 2023, some of these positive trends may dissipate.

However, we expect better performance of the Food Products segment and crushing volumes as China ended its zero-Covid policy. BUY.

Source: OCBC

[behappyalways]

Crude palm oil production and exports are dominated by two countries, Indonesia and Malaysia. The largest plantation owner is Singapore listed Wilmar International.


A Long Idea From One Of Wall Street's Biggest Bears
https://www.zerohedge.com/markets/long- ... gest-bears

[winston]

not vested

Wilmar International (WIL SP)
Contributions From YKA Compensates Weakness From Tropical Oils

We estimate Wilmar’s 1Q23 core net profit at US$350m-380m (1Q22: US$328m).

1Q23 earnings will be largely coming from a YKA turnaround and higher contributions from
sugar, well compensating the weakness from tropical oils.

Recall that in 1Q22, YKA suffered from severe margin compression and contributed only 6% of Wilmar’s PBT.

YKA should be able to deliver a better 1Q23 performance with slightly better margins
and higher sales volume yoy.

Maintain BUY. Target price: S$5.50.

Source: UOBKH

https://research.uobkayhian.com/content ... 4b3118ee71