Wilmar International - RHB Invest 2024-11-04: Stronger Volumes, Weaker Margins

• Maintain NEUTRAL, with new SOP-based Wilmar's target price of S$3.00 (down from S$3.10), 3% downside from the current Wilmar's share price.
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• Valuation of Wilmar will likely remain at a discount to its China-listed peers until earnings make a significant turnaround.

9M24 core profit accounted for 65% and 56% of our and consensus FY24 estimates.

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Food product sales volume grew 16.6% q-o-q

• In 3Q24, food product sales volume grew 16.6% q-o-q, driven by a strong recovery in consumer products (+34.9% q-o-q) as well as medium pack and bulk (+11.4%). This brought 9M24 sales volume growth to 6.3% y-o-y, which is actually above our projected 2% growth for FY24F.
• Although there is no segmental disclosure on PBT for 3Q24, management noted that margin declined in 3Q24, likely coming from downtrading activities.

Feed and industrial sales volume rise 16.9% q-o-q

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Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-11-04 SGinvestors.io

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