Wilmar 1H23 net profit dropped 53%, what should I do?
Wilmar released 1H23 result on 11/08/2023 after trading bell.
Net profits dropped 53% compared with same period 2022 which is much lower than market expectation.
I am holding 6800 shares Wilmar, cost of per share was 3.83, dividend income was not counted. what should I do next?
First, let's review some facts here.
P/E last year was 7.04, P/E TTM was 9.43 at 14/08/2023 close price.
Interim Dividend 6 Singapore Cents, EPS Interim 8.8 US Cents.
14/08/2023 after bell announcement: Wilmar CEO added 4 million shares at 3.695 today.
HPRY Holdings Limited, which Mr Kuok Khoon Hong is deemed interested in, has acquired a total of 4,004,200 shares at an average price of S$3.695 per share in Wilmar International Limited ("Wilmar") in the name of a bank nominee via market transactions.
China economy was weak, Wilmar business will not going up soon. But Wilmar long term prosperity was still there. P/E TTM 9.43 still consider cheap blue chips.
I thought Wilmar had priced in bad Q2 performance. It had continuous loosing day from 16/06/2023, 4.1 SGD to 06/07/2023 3.59 SGD.
I will add 900 share in previous low price 3.59 SGD, and I will add another 900 shares at 3.41 if I did happen. So I can average down my cost.
I believed Wilmar financial result allowed current dividend 0.17 SGD/ year. I can collect dividend while I was waiting for good time came back to Wilmar again.
$WILMAR INTERNATIONAL LIMITED(F34.SI)$
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I bought it last time at 3.59 after poor 1H 2023 results.
I prepared to buy it again at another 5% drop.
there's no news from Wilmar, but it rose up more than 3% today.