SGX Market Updates

7 SGX Stocks with a Plantation Focus Average 25% YTD Gains


PUBLISHED ON |

23 February 2021

  • Among the 200 most traded stocks on SGX, there are 7 stocks whose businesses include plantations, with products used for food. These stocks include Wilmar International, Golden Agri-Resources, First Resources, Sri Trang Agro-Industry, Olam International, Bumitama Agri and Del Monte Pacific. These 7 stocks averaged 25% gains in the 2021 year-to-date.

  • With its FY20 results Wilmar noted its oil palm plantation and sugar milling segment will benefit from higher palm oil and sugar prices. Since the lows in early May 2020, Crude Palm Oil prices have rallied 82%, whilst raw sugar prices have similarly rallied 83% from end of April 2020 lows. Wilmar reported 19% y-o-y gain in FY20 Net Profit.

  • On Thursday (25-Feb), Golden Agri-Resources is scheduled to report, while Olam International is scheduled to report on Friday (26-Feb). The 2 strongest performing stocks of the seven over the past 12 months, Sri Trang Agro-Industry and Del Monte Pacific reported turnaround profits for the respective periods of FY20 (ended 31 Dec) and 1HFY21 (ended 31 Oct).




Commodity Price Rally Fuelled by US, Europe Stimulus & Asia Growth

Crude Palm Oil prices continue to trade end of 2020 levels, and follow a firmer start in early to mid-January, a retracement followed by close to two weeks of consolidation. Since the lows in early May 2020, Crude Palm Oil prices have rallied 82%, whilst raw sugar prices have similarly rallied 83% from end of April 2020 lows. Commodities across the board have been subject to structural repricing on a lower US Dollar fuelled by significant expansionary monetary stimulus measures by the Fed Reserve and ECB. At the same time global demand has been boosted with China and India estimated to generate the strongest GDP growth rates in 2021, after China was the only major economy to report growth in 2020.



Wilmar Signals Further Growth, while Paying Record Dividend

Wilmar International (SGX:F34) reported a 19% year-on-year improvement in FY20 (ended 31 Dec) net profit to US$1.5 billion with FY20 revenue at US$50.5 billion, beating consensus estimates for US$48.0 billion (click here for more). On the demand side, Wilmar noted strong volume growth was observed with consumer product sales volume up 22% for the year, medium pack and bulk was up 7%, whilst feed and industrial products was up 11%. This was attributed to increasing brand awareness and consumers’ confidence in the quality food staples which the Group produces.

Wilmar noted in its business outlook for FY21 that its oil palm plantation and sugar milling segment will benefit from higher palm oil and sugar prices. Recent years have seen Wilmar establish a comprehensive sales and distribution network reaching traditional retail outlets, supermarkets, convenience stores and hyper-marts, reaching about five billion consumers worldwide.

Wilmar added that it was continuing to build, especially in China, more integrated plants in new locations and develop new high growth and complementary businesses like central kitchen, soy sauce, vinegar and yeast. This firstly widens its range of food product offerings and secondly helps to reduce manufacturing, distribution and marketing costs. While signalling the intention to grow the business in FY21, Wilmar proposed a record dividend of S$0.13 per share (including interim of S$0.04 per share paid in August 2020) and a special dividend of S$0.065 per share for its FY20.



Wilmar The #5 Most Active Stock on SGX in 2021 Year-To-Date

For the past 7 weeks, Wilmar has led all of the STI stocks in it performance, with an 18% year-to-date gain, bringing its 12-month total return to 39%. The stock has been recipient to S$89 million in net institutional inflow over the 7 weeks, while being the Exchange’s fifth most traded stock overall. Wilmar, also noted that in FY20, the company had bought back about S$190 million of Wilmar shares, the second highest buyback consideration on the Singapore Exchange during the year.


As tabled below, the 7 stocks among the 200 most traded stocks that have a plantation focus have averaged 25% gains in the 2021 year-to-date, bringing their average 12 month total return to 58%.

The 3 strongest stocks of the seven over the 12 months were Sri Trang Agro-Industry, Del Monte Pacific and Wilmar International.

On 16 February, Sri Trang Agro-Industry (SGX:NC2) reported a turnaround profit for FY20, with net profit at 9.5 billion baht (click here for more).

Back on 10 December, Del Monte Pacific (SGX:D03) reported the Group’s 1HFY21 (ended 31 Oct) EBITDA quadrupled to US$136.8 million from US$29.4 million while net profit was US$18.6 million reversing a net loss of US$75.6 million (click here for more).


SGX Listed Stocks With
Plantation Focus
SGX
Code
Market
Cap
S$m
2021 YTD
Average
Daily
Turnover
S$M
2021 YTD
Turnover
Ranking
2021 YTD
Net
Institutional
Flow
S$M
2021 YTD
Price Change
%
2020
Total Return
%
12-Month
Total Return
%
12-Month
Volatility
%
Wilmar International F34 34,810 49.7 5 89 18 17 39 38
Golden Agri-Resources E5H 2,399 3.5 62 2 19 -30 -9 37
First Resources EB5 2,541 3.5 63 0 26 -31 -4 43
Sri Trang Agro-Industry NC2 3,164 2.6 72 33 78 179 289 76
Olam International O32 5,049 1.9 87 1 3 -11 -7 32
Bumitama Agri P8Z 928 0.6 131 -3 5 -35 -19 43
Del Monte Pacific D03 476 0.4 159 0 25 69 116 71
Total 49,366 62 123
Average 25 23 58 48

Source: SGX, Refinitiv, Bloomberg (Data as of 22 February 2021)



Wilmar announced its debut in the Dow Jones Sustainability APAC Indices in mid-November last year, scoring above the 90th percentile for indicators related to raw material sourcing, human rights, labour practices, strategies for emerging markets, customer relationship management as well as risk and crisis management. Other STI companies that are a part of the Dow Jones Sustainability APAC Indices include CapitaLand, City Developments, DBS Group and ComfortDelGro.







This article is provided by SGX My Gateway.



SGX My Gateway

SGX's investor education portal with market, product and investment information and events. Sign up now at sgx.com/mygateway to receive our investment updates and economic calendar.

This document is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Singapore Exchange Limited (“SGX”) to any registration or licensing requirement. This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document is for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document is entirely at the reader’s own risk. Further information on this investment product may be obtained from www.sgx.com. Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Examples provided are for illustrative purposes only. While each of SGX and its affiliates (collectively, the SGX Group Companies) have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document. The information in this document may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties. The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore. The information in this document is subject to change without notice. This document shall not be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent.












Stock / REIT Search

Advertisement

Advertisement