Wilmar International Intrinsic Value – Adani Wilmar Promoters To Sell Stake to Meet Minimum Public Float Requirement
December 23, 2023
🌥️Trending News
This move marks Adani Wilmar’s commitment to uphold all regulatory requirements. Wilmar International ($SGX:F34) is one of the largest players in the global food industry. With an aim to continue meeting the demands of an ever changing food industry, Adani Wilmar Promoters are looking to comply with the minimum public float requirement by parting with a portion of their stake.
Stock Price
On Friday, the stock of WILMAR INTERNATIONAL opened at SG$3.5 and closed at SG$3.5, up by 1.2% from the last closing price of 3.4. This move is expected to help the company fulfill the listing requirements set by the Singapore Exchange (SGX). It is also likely to boost investor confidence in WILMAR INTERNATIONAL as it will lead to increased liquidity in its shares. Furthermore, it will help the company unlock additional capital which can be reinvested back into their business. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wilmar International. More…
| Total Revenues | Net Income | Net Margin |
| 69.8k | 1.79k | 2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wilmar International. More…
| Operations | Investing | Financing |
| 5.51k | -4.09k | -769.93 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wilmar International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 59.79k | 37.87k | 3.11 |
Key Ratios Snapshot
Some of the financial key ratios for Wilmar International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.7% | 5.5% | 4.8% |
| FCF Margin | ROE | ROA |
| 4.5% | 10.5% | 3.5% |
Analysis – Wilmar International Intrinsic Value
At GoodWhale, we recently conducted an analysis of WILMAR INTERNATIONAL‘s fundamentals. After careful analysis, our proprietary Valuation Line calculated the fair value of WILMAR INTERNATIONAL’s share to be around SG$4.4. However, currently the stock is trading at SG$3.5, which is undervalued by 20.4%. This presents an opportunity for investors to buy WILMAR INTERNATIONAL’s stock at a discounted price. More…
Peers
Wilmar International Ltd is one of the leading palm oil companies in the world. Its competitors are Indofood Agri Resources Ltd, Taisun Enterprise Co Ltd, and PT PP London Sumatra Indonesia Tbk.
– Indofood Agri Resources Ltd ($SGX:5JS)
Indofood Agri Resources Ltd is a leading agribusiness company in Indonesia. It is engaged in the cultivation of oil palm, rubber, and other crops; the manufacture of palm oil-based products, such as cooking oil, margarine, shortening, and biodiesel; and the trading of agricultural commodities. The company has a market cap of 411.79M as of 2022 and a Return on Equity of 16.08%.
– Taisun Enterprise Co Ltd ($TWSE:1218)
Taisun Enterprise Co Ltd is a publicly traded company with a market capitalization of $18.94 billion as of 2022. The company has a return on equity of 5.82%. Taisun is engaged in the business of manufacturing and selling steel products and related services. The company’s product portfolio includes hot-rolled coils, cold-rolled coils, galvanized coils, and pre-painted coils. Taisun also provides steel processing services, such as cut-to-length, slitting, and shearing.
– PT PP London Sumatra Indonesia Tbk ($IDX:LSIP)
London Sumatra Indonesia Tbk is one of the largest palm oil producers in the world with a market cap of 7.71T as of 2022. The company has a Return on Equity of 7.69%. The company produces palm oil and palm kernel oil.
Summary
Wilmar International Limited is a leading agribusiness group in Asia. It is one of the world’s largest listed oil palm plantation owners and the largest processor of palm and lauric oils. Recently, Wilmar’s promoters Adani Wilmar have announced plans to offload their stake in Wilmar International to meet the minimum public float requirements. This will help bring in more liquidity and increase revenue for Wilmar International which in turn would result in higher dividends and better dividends yield for investors. Wilmar International has been consistently growing its profits and its net profit margins have consistently been higher than industry average. This makes it an attractive investment target for long-term investors.
Additionally, Wilmar International has a diversified portfolio of businesses which helps lower its risk profile and makes it better able to withstand market fluctuations. With the current sale of stake by the promoters, Wilmar International is expected to receive a boost in its stock price.
