Wilmar reported third consecutive record quarter results.
Expecting better crushing margin in 4Q22.
Wilmar's 3Q22 results beat expectations
- Read this at SGinvestors.io -
Its revenue rose 10.2% y-o-y to US$18.9b while net profit was up 34.7% y-o-y to US$766.2m, driven by stronger contributions from its associates and joint ventures (JVs), lower effective tax rate and higher margins, partially offset by weaker performance in its China business, YKA.
YKA reported 14.9% y-o-y increase in its revenue to RMB68.4m but net profit fell 46.9% y-o-y to RMB377.2m in 3Q22 due to margin pressure and soybean crushing losses.
Improvement in Consumer products business
- Read this at SGinvestors.io -
Consumer products business in China improved in 3Q22, benefiting from lower raw material costs and higher selling prices as Wilmar made upward price adjustments in the earlier quarters amid cost pressures. The price adjustment will be fully reflected in 4Q22 due to time lag.
Management also guided for better crushing margins in 4Q22 due to higher hog prices in China, potentially supporting better performance for YKA.
Fair value estimate of S$4.68 for Wilmar
Read more at SGinvestors.io.
Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
Use Trust Referral Code PGKPSWAE to sign up NTUC Link or Trust Link Credit Card or open a Trust Bank Savings Account: ✨Earn up to S$1,000 cashback reward 🎟 !
