Stock Name: Wilmar
Company Name: WILMAR INTERNATIONAL LIMITED
Research House: UOB KayHian
It says the group’s 4Q key disappointment came from larger losses in soybean crushing despite management earlier guiding 3Q10 would be the worst quarter for this division.
Company Name: WILMAR INTERNATIONAL LIMITED
Research House: UOB KayHian
Wilmar (F34.SG) is down 2.9% at $5.05, falling for a second day after Wednesday posting a sharper-than-expected decline in 4Q net profit.
UOB KayHian downgrades the stock to Hold from Buy and cuts its target to $5.80 from $7.10 after lowering the P/E for its China operations to 15X from 20X on the China business’ lower earnings visibility.
UOB KayHian downgrades the stock to Hold from Buy and cuts its target to $5.80 from $7.10 after lowering the P/E for its China operations to 15X from 20X on the China business’ lower earnings visibility.
It says the group’s 4Q key disappointment came from larger losses in soybean crushing despite management earlier guiding 3Q10 would be the worst quarter for this division.
HSBC cuts its target to $6.44 from $7.01, saying the oilseeds and grains business saw a profit before tax loss of US$173 million ($221.8 million) after a negative 3Q10 as the group faced negative crushing margins, partly on poor proprietary trading gains; “we remain concerned on WIL’s volatile trading oriented margin profile and downgrade oilseeds and grains EBITDA margins from 6% to 3% for FY11.”
However the house upgrades the stock to Overweight from Neutral with Wilmar set to deliver 51% on year core-earnings growth on its estimates.
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