|Bid||3.8100 x 0|
|Ask||3.8200 x 0|
|Day's range||3.7800 - 3.8200|
|52-week range||2.9900 - 4.1100|
|Beta (3Y monthly)||0.74|
|PE ratio (TTM)||24.33|
|Earnings date||11 Nov 2019 - 15 Nov 2019|
|Forward dividend & yield||0.10 (2.62%)|
|1y target est||2.59|
Wilmar International’s (Wilmar) latest 2Q19 quarterly results were kind of disappointing. Affected by lower crush margins attributable to the impact of African swine fever on soybean meal demand and recognized losses due to the consolidation of Shree Renuka Sugars, the group’s net profit for the quarter sank 52.3 percent to US$150.9 million. The less-than-satisfactory results, […]
* U.S. President delays some tariffs on Chinese imports * Financial and consumer stocks lift Philippine index * Singapore hurt by losses in consumer sector By Soumyajit Saha Aug 14 (Reuters) - Most Southeast Asian stock markets ended higher on Wednesday, in line with global peers, after Washington delayed some tariffs on Chinese imports in much-needed relief for financial markets gripped in economic turmoil. The decision by U.S. President Donald Trump to selectively delay the tariffs that were set to go into effect on Sept. 1, doused friction between the two countries that has roiled global markets. A partial tariff delay is not going to solve the core issues between the U.S. and China," Margaret Yang, a market analyst at CMC Markets said in a note to clients.
Results from ComfortDelGro, ST Engineering and ThatBev, and inflation numbers from America and China retail sales are some of next week's highlights.
Despite the carrot of a potential exemption from import tariffs, Chinese soybean crushers are unlikely to buy in bulk from the United States any time soon as they grapple with poor margins and longer-term doubts about Sino-U.S. trade relations, people familiar with the matter said. China imposed a 25% tariff on U.S. soy imports last year as Washington-Beijing trade disagreements boiled over into tit-for-tat levies on each other's goods.
SINGAPORE (July 12): Wilmar International says the application for the listing of its operations in China on the Shenzhen Stock Exchange has been accepted. Yihai Kerry Arawana Holdings Co (YKA), a 99.99%-owned subsidiary of Wilmar, is one of the largest agribusiness and food processing companies in China. Should the application for the listing be approved by the China Securities Regulatory Commission (CSRC), Wilmar says an initial public offering of new YKA shares can be expected.
SINGAPORE (July 1): Wilmar International offers safe haven against uncertainty from the US-China trade war, given the group’s exposure to essential food categories, says Maybank KimEng.
Sucres et Denrees (Sucden), Alvean, ED&F Man, and Louis Dreyfus Company scooped up the delivery of the July raw sugar against ICE Futures U.S. contract that expired on Friday in the largest delivery on record, traders said. The delivery against the July raw sugar contract on ICE Futures U.S. totaled about 41,500 lots, about 2.1 million tonnes of raw sugar, three traders told Reuters.
SINGAPORE (June 20): UOB KayHian is maintaining Wilmar International at “buy” after its China operations took another step closer to a spinoff and A-share listing in the fourth quarter. RHB says Wilmar’s current China operations contribute about 60% of group PAT. The IPO proceeds would be used for the expansion of wheat flour, rice milling and soybean crushing capacities in China.
SINGAPORE (May 17): RHB Research and UOB Kay Hian are maintaining their “buy” calls on Wilmar International with target prices of $3.94 and $3.90, respectively, while OCBC Investment Research keeps its “hold” call on the stock with a higher $3.66 fair value estimate.This comes after the plantation group reported a 26.4% rise in 1Q19 earnings to some $350.5 million, boosted by improved performance in the Tropical Oils and Sugar segments. In a Thursday report, RHB analyst Juliana Cai says Wilmar remains her top pick for the plantation sector as she is even more upbeat on the group’s 2Q19 earnings prospects post a recent analyst briefing.Based on management feedback, Cai believes the Tropical Oils segment will remain strong on low feedstock costs, while Oilseeds & Grains should improve as soybean crush margins turn positive in the current quarter.Tropical downstream margins are also expected to benefit from low crude palm oil (CPO) prices going forward, with 3Q processing margins to remain strong with the likelihood of stocked up cheap inventories on Wilmar’s end, adds Cai.As such, the analyst has revised in-house CPO and palm kernel (PK) price assumptions to MYR2,200, MYR2,400 and MYR2,500 per MT and MYR1,300, MYR1,550, MYR1,550 for FY19F-21F. “This has tweaked our FY19F-21F earnings by -2% to 2%. We also roll over our valuation base year to FY20F, resulting in a higher SOP-derived TP of $3.94 [from $3.80 previously],” says the analyst.Similarly, UOB analyst Leow Huey Chuen thinks Wilmar is likely to sustain the positive 1Q19 results performance into 2Q considering its recovering crush margins and higher soybean crush volumes.With the recent round of tariff hikes by the US and China having less impact on the soybean market as compared to the previous round of hikes, Leow sees less distortion to Wilmar’s soybean crushing operations and the securing of raw materials.“After the 2H18 experience, Chinese buyers are not in hurry to secure soybean supplies and are waiting patiently for the price to stabilise. There is still ample soybean supply in China, and the soybean crushing sector is also recently undergoing consolidation again, which is allowing Wilmar to capture larger market shares. This is expected to translate into higher utilisation rate and higher sales volume in 2Q19. As such, we are expecting higher q-o-q contributions from oilseeds & grains,” he explains.Both Leow and Cai are also positive on the upcoming listing of Wilmar China (Yihai), which is likely to materialise in 4Q19, with the latter analyst highlighting the IPO as Wilmar’s key catalyst to its share price performance.While OCBC analyst Low Pei Han considers Wilmar’s latest 1Q19 earnings performance “reasonably good”, she intends to monitor the group’s Sugar and Palm plantation segments going forward. Nonetheless, Low also expects improved crush margins in 2Q and has increased her price-to-book valuation on the stock from 0.9 times to 0.95 times based on the five-year historical average.“Good management in [the crushing business] and better contributions from other parts of the group’s diversified portfolio have allowed [Wilmar] to report a reasonably good set of results. The improved performance by both Tropical Oils and Consumer Products since 2Q18 has also been encouraging,” says Low.Shares in Wilmar last traded 2 cents lower at $3.53 before the midday trading break, or 1 times Dec-19F book value based on RHB estimates.
SINGAPORE (May 17): RHB Research and UOB Kay Hian are maintaining their “buy” calls on Wilmar International with target prices of $3.94 and $3.90, respectively, while OCBC Investment Research keeps its “hold” call on the stock with a higher $3.66 fair value estimate. In a Thursday report, RHB analyst Juliana Cai says Wilmar remains her top pick for the plantation sector as she is even more upbeat on the group’s 2Q19 earnings prospects post a recent analyst briefing. Based on management feedback, Cai believes the Tropical Oils segment will remain strong on low feedstock costs, while Oilseeds & Grains should improve as soybean crush margins turn positive in the current quarter.
SINGAPORE (Apr 10): OCBC Investment Research is keeping Wilmar International at “hold” given the group is expected to report its 1Q19 results in about a month’s time, during which it may see a negative impact on earnings due to weak soybean crush margins. This is the result of a sharp decline in meal demand from the outbreak of African swine fever in China and a sharp drop in Brazilian soybean basis, according to OCBC analyst Low Pei Han in a Tuesday report. “As such there could be some caution in trading prior to the lead up of the results,” says Low of OCBC who has a $3.44 fair value.