Brokers' take

Wilmar International > Buy OCBC Investment Research, Feb 23 Feb 23 close: S$3.13 Fair value: S$3.51

WILMAR reported a 3.3 per cent year-on-year fall in revenue to US$11.5 billion and a 23.8 per cent drop in net profit to US$427.5 million in 4Q17, bringing full-year net profit to US$1.2 billion - which is a 25.4 per cent increase compared with FY16. This was better than our and the street's expectations.

Net gearing was 0.8 times in FY17, compared with 0.7 times in 3Q17. As of December 2017, Wilmar had total credit facilities of US$33.7 billion, of which 41 per cent was unutilised, reflecting the ample financial cushion available for the firm.