Friday, August 2, 2013

WILMAR INTERNATIONAL : Challenging Quarter; Brighter Days Ahead (UOBKH)

WILMAR INTERNATIONAL                                
Price/Tgt: S$3.15/3.80      
 Hi/Lo: S$3.89/3.00
2Q13 Preview: Challenging Quarter; Brighter Days Ahead
Wilmar is scheduled to release its 2Q13 results on 6 Aug 13 after market close. We expect Wilmar to deliver a net profit of US$240m-280m, lower qoq but higher yoy on the turnaround of the oilseed & grain division from losses in 2Q12. The palm & laurics division is likely to be the only division to show stronger numbers to partly offset the weakness of the other divisions. Maintain BUY. Target price: S$3.80.

What’s news
•    Management has guided for a more challenging 2Q13 since 1Q13 results briefing, ie the poorer results are unlikely to be a surprise to the market. The main challenges are weaker outlook for soybean crushing, where utilisation could be affected by the bird flu breakout in China early 2013. Subsequently, the breakout of The Yellow Canopy Syndrome could affect the sugar yield in Queensland, Australia. Sugar contribution should be stronger in 2H vs 1H and to-date there is still no concrete information on the potential yield impact.

•    2Q13 results are scheduled to be released on 6 Aug 13 after market close.We expect a net profit of US$240m-280m vs 1Q13’s US$315.4m and 2Q12’s US$117.1m. Softer performances are expected across all divisions, with the exception of its palm & laurics division, which could see better profit contribution from higher sales volume and a stable margin.

•    Maintain BUY with target price of S$3.80 based on the sum-of-the parts (SOTP) method, implying a blended PE of 14.5x 2013F and 12.5x 2014F.

Source/Extract/Excerpts/来源/转贴/摘录: UOBKH-Research,
Publish date: 01/08/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)

乔治·索罗斯(George Soros)



高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo

There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock