Wilmar International

Wilmar a 'buy' as it is one step closer to its China IPO

SINGAPORE (June 1): As Singapore begins to ease the circuit breaker (CB) measures starting with Phase 1 on June 2, several stocks and real estate investment trusts (REITs) could emerge as beneficiaries.

Indonesia reiterates its commitment to a higher biodiesel blend in its diesel oil amid Covid-19 pressures.

Here are three stocks to watch for the week: Wilmar international, Venture Corporation and China Aviation Oil.

Looking ahead, CGS-CIMB analyst Ivy Ng says that the group remains “cautiously optimistic” that its 2Q operations will not be significantly impacted by the pandemic, provided China’s economy recovers as expected.

Wilmar International recorded a 12.1% drop in earnings to US$224.3 million (S$316.7 million) for the 1Q2020 ended March, from earnings of $257.0 million a year ago.

Although cheap prices might be enough to lure investors in, Simadiputra advises investors to focus on quality stocks with solid fundamentals such as Bumitama Agri, Wilmar or First Resources.

Wilmar’s earnings had outperformed analysts’ forecasts, coming in at 8% and 3% higher than the estimates of CGS-CIMB and RHB respectively

Including the interim dividend of 3 cents per share paid in August 2019, the total dividend paid and proposed for FY2019 comes in at 12.5 cents per share, representing the highest cash dividend declared by the group since listing.

The sharp decline in CPO futures price could be due to panic selling on concerns that the rapidly spreading coronavirus in China will negatively impact global growth and demand for palm oil, says CGS-CIMB Research.