Wilmar International
Buy
Maybank Kim Eng Research | May 8
May 8 close: S$3.20
Target price: S$4.04
1Q15 PATMI accounted for 17 per cent of our FY15E. We deem this in line, as 1Q is traditionally its weakest quarter. Revenue fell 8 per cent year on year on lower commodity prices. But net profit leapt 49 per cent year on year from last year's US$241 million low. Growth was spear-headed by strong soybean crushing margins, better associate contributions and a reversal from huge FX losses last year. Part of this was negated by weakness in Tropical Oils.
We expect crushing margins to remain decent in 1H15. Operating conditions for crude palm oil (CPO) plantations and refining could remain difficult in the...
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