Wilmar International (WIL)

Wilmar reports 52.3% fall in 2Q19 earnings to US$151 mil on lower crush margin

SINGAPORE (Aug 13): Wilmar International reported a 52.3% decrease in net profit from continuing operations to nearly US$150.9 million ($209.5 million) for 2Q19 ended June from US$316.4 million in 2Q18 a year ago.

The agribusiness group said this was mainly due to lower crush margin for the quarter as the impact of the African swine fever outbreak on soybean meal demand was greater than previously expected. However, this was partially offset by strong performances from Consumer Products and Oleochemicals.

STI retests April high; breakout difficult

SINGAPORE (July 19): The Straits Times Index is at its highest level since it peaked on Apr 4 at 3,407. Quarterly momentum has strengthened at its equilibrium line, and appears poised for an upturn. Short term indicators are falling. Short term stochastics and 21-day RSI are coming off the top of their range, and their levels are still in an elevated area. ADX is falling, and the Dis are neutral – this indicator suggests that the index may stay within a range. Volume has not expanded sufficiently for prices to break above 3,207.

Wilmar says listing of China ops accepted by regulator but waiting for approval

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. Its business activities include the processing and sales of kitchen food, feed ingredients and oleochemicals in China

Wilmar started at ‘buy’ by Maybank KimEng as safe haven stock

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.

Maybank says up to 90% of Wilmar’s revenues are generated in emerging markets. In China, Wilmar has market leading positions in essential food items such as cooking oil, flour, rice, sugar and animal feed inputs.

Wilmar kept at 'buy' by UOB as China ops takes a step closer to listing

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.

“The IPO would likely make Wilmar one of the largest listed vegetable oil and food ingredient producers by market capitalisation,” says lead analyst Leow Huey Chuen in a Thursday report.

Plantations kept at 'market weight' by UOB with Wilmar and Bumitama top picks

SINGAPORE (May 29): UOB Kay Hian says 1Q19 was another weak quarter of earnings for plantation companies largely due to subdued palm and palm kernel oil prices.

Although companies with older palm trees reported weaker y-o-y production, most companies are guiding for higher FBB production for the rest of 2019, especially 2H19.

This means 1Q19 earnings would likely have hit the bottom this year.

“We expect stronger earnings in 2H19, driven by better production and higher ASP. Maintain ‘market weight’,” says UOB analyst Leow Huey Chuen.

As El Niño approaches, plantation stocks rally, but is there any value left for retail investors?

SINGAPORE (Apr 29); Before the welcome relief in the form of thunderstorms towards the end of April this year, the weather was hot and dry. Meteorologists appear to be forecasting more hot and dry weather for parts of the Indonesian archipelago in the coming months. That is not good for palm oil production as yields could suffer, according to the Malaysian Palm Oil Board (MPOB).

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Singapore-listed palm oil planters kept at 'market weight' by UOB on valuation catch-up

SINGAPORE (Apr 22): UOB KayHian expects interest in palm oil planters such as Golden Agri-Resources, First Resources and Bumitama Agri to rebound, driven largely by a more positive view on CPO prices.

Year to date, share prices in Singapore-listed plantation companies have outperformed regional peers, after two years of underperformance versus regional peers. Interest in the palm oil sector has improved with the recovery in prices and potentially lower production.

Wilmar kept at 'hold' by OCBC before 1Q results reveal

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.

Wilmar kept at 'neutral' by CGS-CIMB on plans to buy 50% of Goodman Fielder

SINGAPORE. (Mar 12): CGS-CIMB Research is “neutral” on Wilmar's plans to buy the remaining 50% stake in Goodman Fielder (GF) as the acquisition deal should not impact near-term earnings.

The GF group is a regional food company across Australia, New Zealand and Asia Pacific. It manufactures and sells a wide range of food products. The company also owns brands such as Wonder White bread, Meadow Lea margarine and Praise mayonnaise.

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