Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Can Wilmar shares reverse recent losses in light of 1H profits?

Analysts foresee a potential 38% price upside on the food producer’s stocks in the next twelve months.

Wilmar share price stocks analyst target rating Source: Bloomberg
  • Wilmar International (SGX: F34) share price rallied 2% on Thursday (12 August 2021)
  • The group’s net profit improved by 23% year-on-year in the first half of 2021
  • Its group CEO expects its performance for the rest of the year ‘to be satisfactory’
  • The stock has fallen 8.5% in the last three months
  • Interested in trading Wilmar shares? Open an account with us to get started.

Wilmar stock price: what’s the latest?

Wilmar shares rose over 2% on Thursday, after the group released its financial results for the first half of 2021.

The group saw its net profit jump up 23% to US$750.9 million for the six months ended 30 June 2021, up from US$610.5 million in the same period a year ago.

This came on the back of better performance in both the Feed & Industrial Products and Plantation & Sugar Milling segments, as well as higher contributions from its associates and joint ventures.

Excluding gains from non-operating items, core net profit for 1H 2021 improved 15% to US$732.2 million, against 1H 2020’s US$635.5 million.

Meanwhile, revenue for the six months grew by 30% to US$29.53 billion, mainly due to higher commodity prices during the period, as well as an overall increase in sales volume, especially from medium pack and bulk products in the Food Products segment.

In lieu of the results, the group’s board has proposed a higher interim tax exempt (one-tier) dividend of S$0.05 per share for 1H 2021. It paid out a dividend amount of S$0.04 for the first six months of 2020.

The proposed dividend for 1H 2021 will be payable on 27 August 2021.

What’s your view on Wilmar? Take a long or short position on the stock today

Wilmar shares are down by 8.5% in the last three months. The stock has a consensus rating of ‘outperform’ and price target of S$6.23, based on the latest SGX analyst data. This equates to a potential 37.8% upside.

Go long or short with CFDs on 16,000+ shares with our award-winning platform.* Perfect your technique with S$200,000 worth of virtual funds via a free demo account. Create your free demo account here.

* Based on the Investment Trends 2018 Singapore CFD & FX Report based on a survey of over 4,500 traders and investors. Awarded the Best Online Trading Platform by Influential Brands in 2020. Awarded the best retail FX provider for Asia by FX Markets in 2020

What’s the outlook for the rest of 2021?

Mr Kuok Khoon Hong, Chairman and CEO of Wilmar said that the Covid-19 pandemic ‘continues to bring about disruptions and market volatility in the countries where the group operates’.

He added that the company’s 1H2021 results ‘have been satisfactory’, considering the challenging operating conditions created by both Covid-19 and increasing commodity prices.

Looking ahead, he expects the Feed & Industrial Products segment to keep performing well on the back of positive downstream margins and sustained strong demand from the tropical oils businesses.

Additionally, the Plantation and Sugar Milling segment is also expected to benefit from higher palm oil and sugar prices.

Crush margins in China, which have improved slightly from the depressed levels in the second quarter, is also expected to improve further in the third quarter.

‘The strength of our diversified operations is that it enables the group to continue to perform well as weakness in one business is often offset by good performance in other segments,’ said Mr Kuok.

‘Barring unforeseen circumstances, the group’s performance for the rest of the year is expected to be satisfactory.’

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.