$Wilmar Intl (F34.SG)$$Yihai Kerry Arawana Holdings (300999....
THERE WILL BE CHINA STIMULUS TO BOOST CONSUMPTION.
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I like to identify cheap stocks which is under the radar for SIGNIFICANT UPSIDE and Gains
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524773 : sugar and palm oil and palm oil products can sell anywhere right? I would suppose only central kitchen and maybe animal feed is more dependent on China? central kitchen we don't know the metrics because it is currently a top secret according to management haha..
ValueBull OP 524773 : the main buyers of palm oil and sugar is China, India, Europe. China stands out because they are currently having a trade war with EU and Canada. The state companies that import edible oils are shifting to BRICS partners and members for resources due to their ability to settle trades in local currency and bypassing the USD
ValueBull OP 524773 : central kitchen is seen to be a sales channel for Wilmar to improve sales volume in the medium pack and bulk segment. But it is expected to turn EBITDA positive next year
524773 ValueBull OP : I thought that since both palm oil and sugar price are good now.. means everyone (china is part of everyone or even if China doesn't want so much of these everyone except china wants) wanted these commodities so with or without stimulus the outlook is good for Q4 (I think it can be on par or better than q1 /q2). animal feed I haven't read much so I don't know if these ones depends on China consumption or actually also can sell anywhere else.. maybe china need more pork and soy beans is for them to eat? haha this one I anyhow imagine
524773 ValueBull OP : heard this is a challenging market.. but also thought this idea is good if can take off.. not many people thought of doing this right? I think it is a good initiative. if can take off a lot of synergy with existing businesses.. plus now you have access to the very vast china end market
ValueBull OP 524773 : for an indication on how good the palm and sugar plantation business can be, check out FY21 and FY22 When palm oil shot up suddenly.
China import volumes will shoot up since the policy is now to promote domestic consumption
ValueBull OP 524773 : it's not exactly challenging. basically, it's a catering business. the synergy is achieved because Wilmar has control of the entire food supply chain from raw materials to cooking and logistics delivery.
it's a synergistic business in the largest food market in the world
524773 ValueBull OP : well it's new and not known yet how profitable it is .. mgmt is keeping secrets for now until they felt ready so it is a black box for now
524773 ValueBull OP : hopefully this will reflect in the share price soon.. soybean prices seem to be good now too so Q4 could well be a near perfect storm (in a good way)
ValueBull OP 524773 : it's profitable but nothing to shout about. look at the gross margins of Wilmar. it's below market average to be honest.
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