• Core PATMI rose 18.3% YoY
• Highest dividend of 19.5 S cents declared since listing
• Higher fair value estimate of SGD6.16

Wilmar’s FY20 revenue rose 18.5% YoY to USD50.5b while core PATMI was up 18.3% YoY to USD1.5b, boosted by strong performance across its key segments. A final dividend of 9.0 S cents per share and a special dividend of 6.5 S cents were declared, bringing the total dividend for FY20 to 19.5 S cents per share (+56% YoY). This is the highest dividend declared since listing.

Wilmar’s share price rose ~27% since our last report in Nov 2020 on the successful listing of YKA and the recovery in CPO prices and demand.

We remain positive on Wilmar given that

1. the listing of YKA provides long-term benefits to Wilmar as it allows Wilmar to penetrate further into China;
2. recovery in CPO and sugar prices;
3. higher crushing margins as China restocks after ASF;
4. continued recovery from HORECA demand; and
5. beneficiary of renewed confidence on Indonesia’s B30 program after Indonesia raised export levy.

After adjustments, our fair value increases from SGD5.40 to SGD6.16.

Source: OCBC Research - 24 Feb 2021