08 August 2014

Wilmar Quarterly Report Presentation Slide - August 2014

Source: http://infopub.sgx.com/FileOpen/Wilmar_2Q14_Results_Briefing_Presentation_7Aug2014.ashx?App=Announcement&FileID=308831

My Notes

Wilmar still experienced a weakening financial report, mainly due to the drop in palm oil division as well as the losses in sugar division.  Although the sugar division was making losses, but the group still worked hard to acquire more sugar related business, it means that the group was doing a good job by acquiring the loss making sugar business at the lower valuation.

The investors have to be patient to wait for the commodities price to rebound later. As NAV is US$237.1 or around S$2.96, Wilmar is now trading at PB ratio of around 1.1 X which I believe is reasonable as this is a blue chip counter with strong fundamental.

Nonetheless, the company declared 2.0c interim dividend, 0.5 cents lesser compared to corresponding period last year. It is translated to around 0.6% dividend yield. Let's wait for the whole year result before we could have a better idea on Wilmar's operating performance, as the group commented that they expected to have a much better result in 2H14.

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