Wilmar International - CGS-CIMB Research 2022-04-29: Reported Net Profit Lifted By One-Time Gain

Wilmar International - Reported Net Profit Lifted By One-Time Gain

  • Wilmar (SGX:F34)’s 1Q22 core net profit fell 23% y-o-y due to lower YKA contribution. Key surprise is a one-off gain of US$176m arising from the listing of AWL.
  • Wilmar (SGX:F34) indicated the high commodity prices due to the Russia-Ukraine war will benefit its plantation and sugar milling division in the coming months but will negatively impact its food products segment margin due to higher raw material costs. It also said that earnings contribution from its Russia and Ukraine investments, which are likely to be negatively impacted by the war, is not material. However, we are concerned that the group’s tropical oils operations will be impacted by Indonesia’s recent ban on export of crude palm oil, RBD palm oil, RBD palm olein and used cooking oil as this could disrupt its milling and refinery processing volumes and margins. This could be partly offset by better performances from its refineries located outside Indonesia.
  • We maintain our SOP-based target price of S$5.69 for Wilmar (implied FY22F P/E of 15x). Despite short-term challenges, we maintain our ADD rating as Wilmar offers attractive FY22F P/E valuation of 11.4x and dividend yield of 3.9%.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

Ivy NG Lee Fang CFA CGS-CIMB Research | Nagulan RAVI CGS-CIMB Research | https://www.cgs-cimb.com 2022-04-29
SGX Stock Analyst Report ADD MAINTAIN ADD 5.690 SAME 5.690

Previous report by CGS-CIMB:
2022-02-24 Wilmar International - Mixed Signals On Its FY22F Prospects

Target prices by 4 other brokers at Wilmar Target Prices.
Listing of broker reports at Wilmar Analyst Report.

Relevant links:
Wilmar Share Price History,
Wilmar Announcements,
Wilmar Dividends & Corp Actions,
Wilmar News Articles


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