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Waiting for coconut to drop to S$3.00
Rammerjammer ( Date: 16-Jan-2024 11:33) Posted:
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UOBKH cuts Wilmar target, expects negative sentiment from unit&rsquo s alleged fraud case
UOB Kay Hian (UOBKH) on Tuesday (Jan 23) cut its target price on Wilmar International : F34 -2.7% by 11.8 per cent to S$3.35 from S$3.80. It maintained its &ldquo hold&rdquo recommendation on the counter.
The research team expects short-term negative sentiment on the agribusiness group&rsquo s share price, given its association with an alleged fraud case that is ongoing.
Wilmar&rsquo s China-listed subsidiary Yihai Kerry Arawana, denied allegations on Jan 12 that one of its business units was partially responsible for a fraud that led to a 5.2 billion yuan (S$973.3 million) loss for Anhui Whywin, a state-owned trading company.
The business unit, Guangzhou Yihai, was sued by the public prosecutor as an &ldquo accomplice&rdquo in contract fraud related to palm oil trades between Anhui Whywin and a privately owned counterparty, Yunnan Huijia Import and Export Co.
In a bourse filing on Jan 16, Wilmar said it does not condone any corrupt practices by any of its employees or officeholders. It also noted that its unit, Yihai Kerry, disagrees with the allegations directed at the company and will defend its right to protect the legal interests of the company and all shareholders.
Three days later, the group acknowledged in a response to Singapore Exchange queries that it should have released its statement earlier but it took the view that the matter was not significant in terms of potential liability for Guangzhou Yihai.
Wilmar also disclosed the Guangzhou Yihai&rsquo s contribution to the group&rsquo s financial position. For FY2022, Guangzhou Yihai accounted for 2.2 per cent of Wilmar&rsquo s revenue, 1.2 per cent of its net profit and 0.3 per cent of the group&rsquo s net assets.
UOBKH believes the matter would have minimal impact on Wilmar&rsquo s operations, noting that Guangzhou Yihai&rsquo s involvement was mainly as a transit storage provider. However, the matter may raise concerns about governance, despite having marginal financial impact.
After factoring in short-term negative sentiment, the research team now values Wilmar at 18 times earnings versus 25 times previously. It maintained its earnings forecast for FY2023 at US$1.1 billion, US$1.6 billion for FY2024 and US$2 billion for FY2025.
Its new target price of S$3.35 implied a potential upside of 2.4 per cent from Wilmar&rsquo s last trading price of S$3.27 as at the midday trading break on Tuesday. Shares of Wilmar were trading 1.8 per cent or S$0.06 lower at the time.
In view of the group&rsquo s H2 2023 results release on Feb 21, UOBKH expects Wilmar to beat its expectations.
It projects a core net profit of US$320 million to US$350 million for Q4. This will bring full-year core net profit estimates to between US$1.2 billion and US$1.23 billion, which is 6 to 8 per cent lower than consensus expectations.
&ldquo Its operations in China have shown some positive developments however, these improvements have not been substantial enough to offset the challenges stemming from the palm-refining business,&rdquo said UOBKH analysts Leow Huey Chuen and Jacquelyn Yow.
Their liabilities very high leh, such high interest rate environment...$3.00 nasi lemak coming...
accumulate some....gd div yield at current px....agak coy will buy back shares at the end of the day.... palm oil px has been u-turn up fr a wk liao... dyodd
Joelton ( Date: 16-Jan-2024 10:08) Posted:
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China side trying to capitalise on this to make a quick $ , turn back will be quick too .
DYODD
DYODD
Joelton ( Date: 16-Jan-2024 10:08) Posted:
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Wilmar unit denies involvement in alleged China palm oil fraud
A Chinese subsidiary of Asian food giant Wilmar International F34 0.00% has denied allegations by a city prosecution agency that one of its units was partially accountable for a trade fraud that led to a 5.2 billion yuan (US$725 million) loss for a state-owned company.
Wilmar&rsquo s Yihai Kerry Arawana Holdings Co said in an exchange filing Friday that one of its units had been sued in the eastern province of Anhui over its alleged role in loss-making palm oil trades between a state-owned trader and a privately owned counterparty. The company, one of China&rsquo s top food processors, said it wasn&rsquo t involved in the fraud.
Chinese commodity trading has been hit by a series of scandals in recent years, including cases where fraudulent financial documents and warehouse receipts were used as proof of collateral and credit. The filing by the unit of Singapore-listed Wilmar, co-founded by billionaire Kuok Khoon Hong, gives a rare insight into commodity trading in the world&rsquo s largest consumer.
The case focuses on state-owned trader Anhui Whywin International Co and its palm oil deals with private feed trader Yunnan Huijia Import & Export Co, according to the indictment cited in the filing. The prosecutor alleges that Huijia used forged documents to obtain palm oil deliveries from Whywin, without paying the full amounts, the indictment said. The prosecutor alleges that the Yihai Kerry unit was also involved in the case.
Yihai Kerry said all transactions conducted by its Guangzhou unit in the trades were in compliance with normal practices and contractual agreements. The company did not obtain any improper benefit from Huijia, nor did it participate in the alleged fraud against Whywin, according to the filing.
durian must be bao jia!
May be they can start planting Durians ?? :)
expecting palm oil px to soften into 2024....dyodd
Uncle Kuok collecting cheap cheap...
Another millions shares bagged by Uncle Kuok. Today @ $3.45
DYODD
DYODD
I think this counter is manipulated. A lot of concerted and collaborated effort by many traders to sell it down and buy it up.
He maybe buying but this seller is continuing selling and has successfully push the price below 3.50 ....hmmm
ruanlai ( Date: 12-Dec-2023 13:41) Posted:
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Uncle Kuok keeps buying.....another 10% can call for GO liao.
dyodd.....
dyodd.....
Uncle Kuok bought 1.7millions shares on 11 Dec 23.
Today is 12.12 birthday sales for Wilmar.
Uncle Kuok can collect cheap again today.
Dyodd
Today is 12.12 birthday sales for Wilmar.
Uncle Kuok can collect cheap again today.
Dyodd
https://links.sgx.com/FileOpen/WIL%20news%20release%20-%20Most%20Sustainable%20Food%20Products%20Cos%20by%20DJSI.ashx?App=Announcement& FileID=780403
Wilmar Ranked Amongst the World&rsquo s Most Sustainable Food Products Companies by DJSI
Wilmar Ranked Amongst the World&rsquo s Most Sustainable Food Products Companies by DJSI
That seems unlikely.....
Uncle Kuok keep buying...but people keep selling..sellers know something about the company that uncle kuok doesn' t?
what is going on here ? Keep depress .....BB not buying back shares ?
anyone ?
Dyodd
anyone ?
Dyodd
The Hour Glass continues buyback, Wilmar chair Kuok raises stake
THE Straits Times Index fell 0.52 per cent over the five trading sessions from Dec 1 through Dec 7.
There were 56 filings for changes in director interests and substantial shareholdings in that period from 32 companies, as well as 70 filings for share buybacks by 27 companies.
The Hour Glass
Luxury watch retailer The Hour Glass : AGS +2.48% continued its buyback spree over the five trading sessions, acquiring more than one million shares for an average share price of S$1.58 per share.
On Dec 1, it purchased 540,000 shares at S$1.561 per share for a total consideration of S$845,132.65. On Dec 5, it purchased 238,000 shares at S$1.566 for a total consideration of S$373,629.73.
The following day, it purchased 45,000 shares at S$1.57 for a total consideration of S$70,818.24. On Dec 7, it purchased 251,000 shares at S$1.61 for a total consideration of S$403,991.20.
The transactions bring the total number of share buybacks by the company to 31 since July this year.
Its shares have been falling since April 2022, with a steep drop since September this year. Over the past month, its share price has declined 8 per cent.
The Hour Glass started off as a subsidiary of Metro Holdings : M01 -2.88% in 1979, before it was transferred to lifestyle company Transmarco. It was later acquired by founding directors Henry Tay and Jannie Tay and publicly listed in 1988.
The company sells watches, jewellery and related products with distribution rights for luxury brands such as Burberry, Christian Dior and Hublot.
It is also the authorised retailer for watch brands Patek Philippe and Rolex.
The Hour Glass posted a 9 per cent fall in net profit for the first half of FY2024, as exchange rate movements hit its margins while revenue stayed flat.
Net profit for the six months ended Sep 30 fell to S$77 million, from S$84.6 million in the year-ago period.
On a per-share basis, its earnings fell 7 per cent to S$0.1171, down from S$0.1258 previously.
The falling share price of The Hour Glass is a reversal of the extraordinary boom between March 2020 and March 2022, when the stock gained more than 300 per cent as demand for luxury timepieces soared during the pandemic.
Its counter ended at S$1.65 on Friday (Dec 8), down 19.9 per cent for the year, valuing the company at S$1.2 billion.
The Hour Glass&rsquo price-to-book value as at Dec 7, 2023 was 1.293 while its price-to-earnings ratio stood at 6.63.