{"id":128555,"date":"2025-03-12T14:27:08","date_gmt":"2025-03-12T14:27:08","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/investing\/wilmar-at-3-00-per-share-more-on-alibaba\/"},"modified":"2025-03-12T14:27:08","modified_gmt":"2025-03-12T14:27:08","slug":"wilmar-at-3-00-per-share-more-on-alibaba","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=128555","title":{"rendered":"Wilmar at $3.00 per share. More on Alibaba."},"content":{"rendered":"


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Quite a few readers and viewers have been asking me on and off this year whether I was adding to my investment in Wilmar.<\/span><\/p>\n

I think more people asked me when Wilmar’s stock price went down to $3.20 and $3.10 per share.<\/span><\/p>\n

I kept saying that I was waiting for $3.00 per share.<\/span><\/p>\n

Briefly in August, I thought I might get it but it didn’t happen.<\/span><\/p>\n

Well, it finally happened.<\/span><\/p>\n

My overnight BUY order at $3.00 per share was filled.<\/span><\/p>\n

Wilmar International is very undervalued if we were to look at the sum of its parts.<\/span><\/p>\n

Its majority held YKA in China has a larger market cap than Wilmar in Singapore.<\/span><\/p>\n

So, buying Wilmar today, we are getting the rest of its businesses for free.<\/span><\/p>\n

This is something I have said for a long time.<\/span><\/p>\n

Of course, a stock could stay undervalued for a long time too.<\/span><\/p>\n

Those of us who track the counter know that insiders are consistently adding to their positions.<\/span><\/p>\n

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Historically, at $3.00 per share or lower, we have seen even more insider buying.<\/span><\/p>\n

Wilmar’s business in China is not performing as well as before as the Chinese economy is still suffering from the meltdown of its property sector.<\/span><\/p>\n

Consumers are still cautious and are not spending as freely as before.<\/span><\/p>\n

Historically, Wilmar also did share buybacks during times of lower earnings as its share price got punished as a result.<\/span><\/p>\n

At current prices, downside is probably limited.<\/span><\/p>\n

I also like that Wilmar has been consistent in paying dividends through good and bad times.<\/span><\/p>\n

They did not suspend dividends during the pandemic, for example.<\/span><\/p>\n

The dividend per share of 17c isn’t demanding as expectation is for earnings per share to be about 30c in 2025.<\/span><\/p>\n

Buying at $3.00 per share gives me a dividend yield of 5.66% and an earnings yield of about 10%.<\/span><\/p>\n

Of course, readers who have been watching my\u00a0 YouTube videos on the banks would be familiar with the concept of earnings yield.\u00a0<\/span><\/p>\n

Wilmar is still one of my larger investments and it fits my primary strategy to invest in bona fide income generating assets which will pay me through good and bad times.<\/span><\/p>\n

I thought I would end 2024 without buying any equities but after initiating a position in Alibaba Group last week, I have added to my position in Wilmar today.<\/span><\/p>\n