Investors of Wilmar (F34) must have that deja vu feeling. In October 2020, Wilmar (F34) share price suffered an explosive meltdown following the hugely successful listing of Yihai Kerry Arawana Holdings Co., Ltd (YKA) on the Shenzhen Stock Exchange ChiNext Board. Fast forward to 22 February 2021, Wilmar (F34) share price fell again following the release of a set of stellar financial result which saw the Group announcing a record total dividend of $0.13.
The form of Wilmar (F34) share price is truly frustrating. We are talking about an organization which recorded a net profit of US$1.54 billion in FY2020. Amid the backdrop of COVID-19 pandemic, how many Singapore companies out there are able to achieve such impressive result (apart from the local banks)? In view of this, I would say that the form of Wilmar (F34) share price does not do justice to its business fundamentals.
To put things into context, the trigger for the recent correction of Wilmar (F34) share price is quite