Thursday, August 8, 2013

Wilmar 2Q13 results: down QoQ, but up YoY (Phillip)

Wilmar International Ltd
Target Price (SGD) 3.61
- Previous Target Price (SGD) 3.70
2Q13 results: down QoQ, but up YoY

 Company Overview Wilmar International Limited is Asia’s leading agribusiness group. Its business activities include oil palm cultivation, oilseeds crushing, edible oils refining, sugar, specialty fats, oleo-chemicals and biodiesel manufacturing and grains processing.

 2Q13 core profit of US$245mn (+42% YoY, -22% QoQ)
 Lower raw material prices to benefit downstream business

  Maintain Accumulate with new TP of S$3.61 What is the news? Wilmar reported core 2Q13 net profit (excl non-operating items) of US$245mn (+42% YoY, -22% QoQ), bringing 1H13 net profit to US$559mn (+48% YoY) or 41%/42% of consensus/PSR full-year estimate, slightly below expectation. Interim dividend was S$0.025/share (S$0.02/share in 1H12).

 How do we view this? The lower QoQ performance was mainly due to lower earnings recorded by Oilseeds & grains, weaker CPO prices and lower margins for Consumer products. For 2Q13, crush margins remain positive for the 4th consecutive month, but down QoQ from US$10/MT to US$3/MT. Palm & laurics remained robust, reported stronger sales volume. Albeit margin fell slightly from US$40/MT in 1Q13 to US$36/MT, it is still above our US$33/MT full-year forecast.

Investment Actions?
 Management highlights that low CPO price and declining refining margins in Indonesia will add to the challenging operating environment, but expects lower raw material prices to benefit its downstream products. We expect 2H13 results to be stronger as sugar milling will turn profitable in 2H and demand in China will rise on festive seasons (mid-autumn and Lunar New Year’s advance purchases in 4Q). We trim our FY13-15E profit forecasts by 1-3%, factoring in the lower crushing and consumer products margins. As such, our target price is revised to S$3.61 (S$3.70 previously), based on blended PE (12.0 FY14E) and DCF valuations. Stock is currently trading near -1 S.D. of 11.4x. Maintain Accumulate.


Source/Extract/Excerpts/来源/转贴/摘录: Phillip-Research,
Publish date: 07/08/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock