SG: Wilmar - Inexpensive valuations but no catalyst

Wilmar | HOLD 19 Jun 2012

Inexpensive valuations but no catalyst -Valuations are inexpensive - But outlook remains cautious - No immediate catalyst Wilmar International Limited (WIL) recently saw its share price hit a new 52-week low of S$3.41 on 14 Jun 2012, down 32% from 30 Dec 2011. At its 52-week low, the stock is down 27% since the release of its disappointing 1Q12 results on 10 May; it is also 43% off its 52-week high of S$5.99. while WIL may have been a tad oversold after its 1Q12 results, with current valuations looking pretty inexpensive, we do not see any immediate price catalyst. This as crush margins are likely to remain depressed for the next few quarters. As such, we continue to maintain our HOLD rating and S$3.87 fair value.