Wilmar

Are things finally looking up for the CPO sector?

SINGAPORE (Apr 9): OCBC Investment Research continues to rate the soft commodities sector “neutral” despite the renewal of interest in the sector and higher forecast of the year’s price to close.

So far, crude palm oil price have increased by about 6% this year, after a 35% plunge from early 2017 to end 2018. Crude palm oil (CPO) stocks have also gathered more interest and better price performance in the past few trading sessions.

Month to date, Golden-Agri Resources is up 12.5%, First Resources is up 9.3%, while Wilmar, which has palm oil exposure as well, is up 5.4%.

Market valuations may be inexpensive but stay defensive: RHB

SINGAPORE (Jan 2): RHB Research prefers to stay selective and defensive amid growth uncertainties in 2019.

The Straits Times Index (STI), down 12% in USD terms, could remain under pressure this year amid slowing GDP growth and an uncertain trade outlook due to China-US tensions.

In a Wednesday report, analyst Shekhar Jaiswal says, “While 12.6x forward P/E and 4.2% dividend yield make the STI’s valuations look compelling, we recommend investors stay selective and focus on buying stocks offering stable earnings, strong balance sheets, and sustainable dividends.”

Ongoing market uncertainty makes it all the more opportune to 'buy' this stock

SINGAPORE (July 4): RHB Research is reiterating its “buy” call on Wilmar International with an unchanged target price of $3.59, while highlighting ongoing market uncertainties and the recent retracement in share price as a good opportunity to accumulate the stock.

The research house has left its forecasts largely unchanged despite recent concerns of a trade war emerging between US and China, as it believes the low soybean prices at present will help to offset tariff fears.

DBS, RHB and OCBC are upgrading this palm plantation stock

SINGAPORE (Feb 26): DBS, RHB and OCBC are upgrading Wilmar International to “buy” from “neutral” with target prices of $3.65, $3.45 and $3.51 respectively.

See: Wilmar reports 23.8% decline in 4Q earnings to US$427.5 mil

DBS says Wilmar’s share price is trading at a bargain, having corrected by 25% in 2017. It is currently trading at 12.1 times FY18 earnings, lower than its five-year average multiple of 14.6 times.

Latest China expansion plans make Perennial an even better 'buy': DBS

SINGAPORE (Jan 4): DBS Vickers Securities is reiterating its “buy” on Perennial Real Estate Holdings with a $1.05 price target given the research house is positive on its medium- to long-term development plans.

This comes after the announcement last night of a Perennial-led consortium closing its first capital commitment to develop US$1.2 billion ($1.61 billion) worth of integrated healthcare property mixed developments in China, to be linked up by the upcoming high speed railway (HSR) network.

Limited downside risks for Wilmar, but no catalysts for share price recovery either: RHB

SINGAPORE (Dec 13): RHB Research is maintaining its “neutral” call on Wilmar International with a lower target price of $3.31 compared to $3.33 previously, after applying a lower target 12 times FY18F P/E for the plantation segment to factor in the shrinkage of sector peer valuations.

In a Wednesday report, analyst Juliana Cai highlights a lack of catalysts for any significant share price recovery in Wilmar, due to the fact that any off-take to additional palm products could be hampered by India’s higher import taxes on both crude and refined palm oil.

Disposal gains could lead to higher-than-expected 4Q earnings for SATS

SINGAPORE (May 17): UOB Kay Hian is estimating SATS will post a 25% y-o-y increase in headline net profit when the airline gateway services and food solutions provider reports its FY17 earnings this Friday, versus the street’s implied estimate of 4.3% growth.

This is because the research house believes the street may not have factored in a combined $12 million of gains from the group’s disposal of its 4% stake in Air Airfreight Terminal (AAT), an air cargo handling terminal operator in Hong Kong, as well as its 51% stake in SATS HK, both of which were announced in 4Q.

ST Engineering, Wilmar, ThaiBev, CityDev, Haw Par, Wing Tai

SINGAPORE (May 12): Here are some stocks to watch this Friday morning:

ST Engineering announced 1Q17 earnings of $103.4 mil, 6% lower from $110.2 million reported in the previous year. Group revenue for the quarter was $1.5 billion, 5% down from $1.6 billion.

See: ST Engineering posts 6% decline in 1Q earnings to $103 mil

STI closes 0.3% higher at 2,962.63

SINGAPORE (Jan 9): The Straits Times Index rose again amid further regional advances, climbing 0.3% to 2,962.63 after spending much of the day at 14-month highs.

The Friday session saw 2.2 billion units of shares traded with a value of $1.1 billion. Gainers outnumbered users 250 to 179.

Global Logistic Properties gained another 2.5% or 6 cents to $2.46 after confirming media reports about a possible sale.

Plantation stocks are counting on these 3 things for a bountiful year

SINGAPORE (Dec 20): DBS Vickers Securities has upgraded its view on the plantation sector to “neutral” on improving fundamentals, as well as expectations of yield recovery and steady prices to boost the earnings of plantation companies in FY17F.

In the research house’s 2017 Outlook report, DBS analyst Ben Santoso says the plantations sector will be shaped by three key issues over the next 12 months: continued tight inventory, higher biodiesel blending, and a strong US dollar.

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