Wilmar's YKA forecasts 4-4.6b yuan profit for 9M FY2020

YIHAI Kerry Arawana (YKA), the Chinese unit of Wilmar International that is pursuing an initial public offering (IPO), expects to post a profit of between four billion yuan (S$788 million) and 4.6 billion yuan for the nine months ended September (9M FY2020).

This would mark a year-on-year increase of between 15 per cent and 30 per cent in YKA's bottom line, Wilmar disclosed in a bourse filing. The forecast was newly revealed in YKA's updated prospectus, which it submitted for final registration approval for its listing bid on the Shenzhen Stock Exchange's ChiNext Board.

YKA expects its revenue for 9M FY2020 to fall between 131 billion yuan and 137 billion yuan, representing a year-on-year rise of between 5 per cent and 10 per cent.

Meanwhile, its recurring profit attributable to owners is expected to come in at between 3.3 billion yuan and 3.8 billion yuan, up between 15 per cent and 30 per cent on-year.

YKA is one of the largest agri-business and food processing companies in China. Its business includes the processing and sale of kitchen food, feed ingredients and oleochemicals in China.

Wilmar has previously said that the spin-off listing would boost its China operations by increasing its market visibility and awareness among current and potential customers, investors and the public in China.

Shares of Wilmar last traded at S$4.80 on Friday, up 0.21 per cent.