Tuesday, April 21, 2009
Wilmar upgraded to Buy by Goldman Sachs
Goldman Sachs upgrades Wilmar to Buy from Neutral on back of more positive view on crude palm oil (CPO) prices, lifts target price to $4.10 from $3.15. Says tightening soybean supply, Malaysia's low CPO inventories, better outlook for crude oil prices should support CPO prices; raises FY09-FY11 CPO price forecasts by 17%-20%. Says Wilmar looks particularly attractive as has, "lowest valuations among large-cap plantation stocks, high organic growth potential and may benefit from a higher MSCI weighting." Says stock deserves to trade at premium to Singapore market given resilient earnings profile; "Wilmar should be a core holding for long-term investors as it offers high quality, high-growth exposure to the palm oil sector given market leadership in its downstream businesses and strong organic growth potential."
Friday, February 27, 2009
Wilmar's 4Q08 results above expectations again
Wilmar's 4Q08 results beat market expectations. Credit Suisse says 219% on-year jump in FY08 net profit to US$1.53 b was 9% above consensus forecast with strong performance driven by better profitability, higher sales volume, full-year impact from the Kuok merger; maintains Outperform rating with $3.30 target price.
Nomura says strong earnings growth is, "a good demonstration of Wilmar''s resilient earnings model and strong management team;" maintains Buy rating and $3.30 target price.
Golden Agri-Resources said its 4Q net profit declined 77% to US$133.3 m on weaker crude palm oil prices and the lower exceptional gains. The palm oil plantation company recorded a US$760.8 m net gain on changes in fair value of biological assets a year earlier. The company booked a US$151.2 m net gain from the change in fair value of biological assets in 4Q08.
The company said crude palm oil prices suffered a severe decline in 4Q due to the global economic downturn, but added that it remains in a good position to weather the "challenging market conditions."
Golden Agri proposed to issue up to 399 m new ordinary shares of US$0.025 each on the basis of one new share for every 25 existing shares in the company. Golden Agri said the bonus shares are intended to reward its current shareholders. The shares will be issued to eligible shareholders, with the record date to be determined later.
Once again, Wilmar's results have exceeded expectations. It is fully justified that Wilmar's resilience commands a higher premium than Golden Agri.
Nomura says strong earnings growth is, "a good demonstration of Wilmar''s resilient earnings model and strong management team;" maintains Buy rating and $3.30 target price.
Golden Agri-Resources said its 4Q net profit declined 77% to US$133.3 m on weaker crude palm oil prices and the lower exceptional gains. The palm oil plantation company recorded a US$760.8 m net gain on changes in fair value of biological assets a year earlier. The company booked a US$151.2 m net gain from the change in fair value of biological assets in 4Q08.
The company said crude palm oil prices suffered a severe decline in 4Q due to the global economic downturn, but added that it remains in a good position to weather the "challenging market conditions."
Golden Agri proposed to issue up to 399 m new ordinary shares of US$0.025 each on the basis of one new share for every 25 existing shares in the company. Golden Agri said the bonus shares are intended to reward its current shareholders. The shares will be issued to eligible shareholders, with the record date to be determined later.
Once again, Wilmar's results have exceeded expectations. It is fully justified that Wilmar's resilience commands a higher premium than Golden Agri.
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