Wilmar share price in lung bursting form

Since my last coverage in 2018, Wilmar share price went on a stupendous lung bursting form, surging from $3.20 in May 2018 to reach a multi-year high of $4.00 in recent days. The catalyst for the bullish Wilmar share price performance should be the approval of its subsidiary’s IPO application in China.

On 12th July 2019, Wilmar share price climbed from $3.76 to $4.06 on 26 July 2019 upon the announcement of China Securities Regulatory Commission (“CSRC”)’s acceptance of Yihai Kerry Arawana Holdings Co., Ltd’ (YKA)s application for its proposed listing on the Shenzhen Stock Exchange. YKA is a 99.99%-owned subsidiary of Wilmar.

Wilmar share price

While the recent form of Wilmar share price had been quite bullish, this counter has not reached the mighty level of $7.00 seen in the giddy days of 2010 when palm oil prices were at the peak. In recent years, Wilmar share price had been hurt by the collapse of the palm oil prices. Will the China IPO ignite another phase of explosive growth for Wilmar?

Wilmar share price in enigma

As a growth stock, Wilmar share price performance is intricately tied to its revenue growth. If investors look back, revenue had risen steadily from USD38.8 billion in FY2015 to USD44.5 billion in FY2018. Correspondingly, Wilmar share price rose from $3.20 in January 2015 to the current $4.00 level.

But analysing Wilmar share price is not easy because the company is a massively diversified agribusiness with sprawling global reach spanning across China, India, Africa and South East Asia countries. With more than 500 plants and 90,000 workforce, it is considered one of the largest food giants in Asia.

On the other hand, Wilmar share price is also quite volatile, with 5-year Beta of 1.07. The reason for Wilmar share price volatility could be attributed to [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: July 28, 2019 — 11:18 pm

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