I see they are buying most of the Indian interest held by Adani...I want to like this company but the free cash flow doesn't seem to be great. There is so much capital investment. I can't tell how much of that is for growth and how much is maintenance.
True the valuation of many Asian holdcos is very attractive.
I would classify Wilmar International not really as a holding company though. More like an attractively valued company in a sector with highly valued subsidiaries (like KSB). I was looking for cheaper Asian alternatives to ADM. Wilmar International definitely fits that bill.
Not a position yet though. Not fully convinced the industry will become more attractive over time. In addition, the most important highly valued subsidiary is in China trading at 60 times earnings. Not giving much value to that :)
Clearly my favorite stock in the industry but is that enough? Jardine Matheson might be a better investment.
Isn't the Chinese subsidiary consolidated in Wilmar's earnings?
Sure but the valuation of the Chinese subsidiary is high and a lot of the earnings are from outside China.
I see they are buying most of the Indian interest held by Adani...I want to like this company but the free cash flow doesn't seem to be great. There is so much capital investment. I can't tell how much of that is for growth and how much is maintenance.
Yes. Not great buying for a high pe when your own stock trades at such a low pe.
Very interesting idea. I would love it to be a little cheaper given the valuation of many Asian holdcos competing to get into the portfolio.
True the valuation of many Asian holdcos is very attractive.
I would classify Wilmar International not really as a holding company though. More like an attractively valued company in a sector with highly valued subsidiaries (like KSB). I was looking for cheaper Asian alternatives to ADM. Wilmar International definitely fits that bill.
Not a position yet though. Not fully convinced the industry will become more attractive over time. In addition, the most important highly valued subsidiary is in China trading at 60 times earnings. Not giving much value to that :)
Clearly my favorite stock in the industry but is that enough? Jardine Matheson might be a better investment.
interesting