Wilmar International

[valuebuddies]

If I remember correctly, 09/10 was bad year for CPO, but big boom for Wilmar. late 10/11, was boom year for CPO, but Wilmar went down from then.

Perhaps you are right, but IMO Wilamr's share price does follow the movements of CPO, just the reaction time could be faster or slower. If you put on a 5 years chart between Wilmar and CPO, you will know what I mean. The recent run up of Wilmar and GAR could be also due to the run up in the CPO.

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Just to add, Wilmar's realised profits is much dependant on the margin of the production as what you mentioned, whereas Wilmar's unrealised profits is dependant significantly on the fair value changes of the plantations. Certain investors would buy when CPO downs with the expectation the Wilmar could post higher profits, but there is also another batch of investors that buys when CPO ups because they are expecting higher NAV.