Hot Investment Profile: Wilmar International
The leading agribusiness group in Asia today, Wilmar International was one of last week’s top five value traded and upwardly mobile shares on the Singapore Exchange (SGX). Founded in Singapore in 1991 by Kuok Khoon Hong and Martua Sitorus, Wilmar is one of the biggest listed companies in terms of market capitalisation on the SGX.
Company Snapshot
Wilmar International is an investment holding company whose operations cover the entire agricultural commodities value chain:
- Oil palm cultivation
- Oil seed crushing
- Edible oils refining
- Sugar milling and refining
- Specialty fats
- Oleochemicals
- Biodiesel and fertiliser manufacturing
- Flour and rice milling
The company is an industry leader in several key areas:
- Palm and lauric oils: World’s largest processor and merchandiser
- Oil palm plantation owner: One of the largest
- Palm oil refiner: Largest in Indonesia and Malaysia
- Flour and rice miller: One of the largest in China
- Raw sugar producer: Among global top 10
- Edible oil refiner: One of the largest in Ukraine
- Largest oilseed crusher, edible oils refiner, specialty fats and oleochemicals manufacturer
- Largest raw sugar producer and refiner
Wilmar has about 92,000 employees, more than 5,000 manufacturing facilities, and its own fleet of vessels. Its distribution network spans more than 50 countries including China, India and Indonesia. The company is also an advocate of sustainable growth.
Wilmar enjoys access to R&D, technology and global market intelligence on related industries through its shareholders. Among them are
- The Kuok Group of companies of Johor Bahru, Malaysia: One of Asia’s most active and diverse multinationals involved in sugar, fertilisers, flour and feed milling
- The Archer Daniels Midland Company of Decatur, Illinois: The leading ethanol and biodiesel producer, and one of the world’s biggest soya bean, corn, wheat and cocoa processors
Wilmar is a 2015 Fortune 500 company (ranked 252nd) and one of Fortune World’s Most Admired Companies in 2016 (3rd in the Food Production industry).
Stock Analysis
Bloomberg reports a 26.87% YTD return for Wilmar, with a one-year return of 17.33%.
Wilmar has a dividend-indicated gross yield of 2.14%, with an earnings per share of USD0.166.
Latest Developments
- In February, Wilmar reported its annual net profit dropped by 8.7% to an eight-year low in 2015 due to its lacklustre performance in palm oil.
- Brazil’s anti-trust authority Cade green-lighted a sugar export joint venture in March, between Wilmar and sugar and ethanol producer Raizen Energia.
- Wilmar bought 599,011 tonnes of sugar in March, making its fourth consecutive raw sugar purchase through the Intercontinental Exchange.
- Wilmar marked its 25th anniversary in April this year, with staff from all over the world flying in to celebrate at a gala dinner.
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