Wilmar International to post stronger H2 results: analysts

The agribusiness giant recorded a 23% increase in its PATMI in the first half. 

Wilmar International posted a strong 23% increase in its PATMI in the first half, at US$750.9m (approximately $1.01b), and analysts expect its second-half results to be higher.

“We expect a stronger H2 2021 as margin pressure on Wilmar’s Food Products segment eases, together with firmer crude palm oil and higher sugar prices, and a recovery in crushing margin. The potential listing of its 50% owned India JV Adani Wilmar is likely to be another catalyst,” said Chu Peng of OCBC Investment Research in a report.

“The initial public offering of its joint venture in India is consistent with the group’s strategy of unlocking the value of its latent assets. It is likely to improve valuation transparency for the parent (although any special dividend is unlikely, we believe). Potential for similar transactions with operations in ASEAN and Africa could be upside catalysts,” said Maybank Kim Eng in a separate report.

OCBC noted as potential upside risks the rise in crude palm oil and sugar prices, better margins from its integrated model, new acquisitions, and the listing of its China operations.

Maybank Kim Eng, meanwhile, cited faster recovery from COVID-19 lockdowns, holding company gap closing between parent and its Chinese listing, and monetisation of a new product under research and development as upside risks.

Downside risks include the fall of crude palm oil prices, sugar prices, impairment of assets, and trading and investment risks, OCBC said.

Maybank Kim Eng noted as downside risks potential revocation of licences, operating bans and activism due to environment, social, and governance-related issues, new COVID-19 strains, and limited credit facilities by lenders.


Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The partnerships aim to improve care delivery and patient outcomes.
The KoolLogix cooling system for data centres uses passive heat extraction and removal.
This is the first-of-its-kind collaboration between an index provider and an airport group.
The new initiative is targeted towards offering greater savings and flexibility.
Mapletree Logistics Trust was seen with the most growth.
Flexibility, specificity, and customer-centred approaches prove to be the edge in today’s enterprise application software companies.
The list is from Investigoal, which gave Singapore a score of 8. 
It won't push through with the acquisition of the majority of stake in a Vietnam property firm.
DBS Country Head Shee Tse Koon has apologised for the disruptions.
Only two in five Singaporean internet users are aware of NFTs.
October postings were up by 76% from February 2021.
Three of the four initiatives were spearheaded by Enterprise Singapore.
The agreement comprises two payments.
MTI cited four downside risks that will affect the economy's growth next year.