Wilmar International - UOB Kay Hian 2024-11-06: Recovery Is On, But Uncertainty Ahead

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During YKA’s briefing, management observed a sales recovery trend in 3Q24 and expects this to continue in 4Q24.

Further, Wilmar may see a one-off gain from the sale of its 6.5% stake in Adani Wilmar. However, we note that election uncertainty in the US and weak consumer spending in China remain.

Analyst briefing review.

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• Based on our revised earnings from our previous note (Wilmar International - 3Q24 Results Below Expectations), we expect a core net profit of US$340m-350m for 4Q24. Though 4Q profit is typically lower than that of 3Q’s due to seasonal factors, the following segmental highlights point to a better quarter ahead:

Food products: Expect gradual growth.

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Heidi Mo UOB Kay Hian Research | Llelleythan Tan Yi Rong UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-11-06 SGinvestors.io

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