Wilmar

Wilmar: recent underperformance comes on the back of Bloomberg reports that China has ordered 4 cooking oil suppliers, incl Wilmar, not to lift prices before a parliamentary congress in Mar ’11. The 4 suppliers together control over half of China’s small-pack oil mkt…

UBS says share price weakness could be potential buying opportunity for longer term investors. Believes the impact of price caps may not be too significant, as i) Wilmar already raised edible oils prices recently by 10% in China, and ii) Consumer Products, the most directly affected part of the business, contributed only 9% to pre-tax profits ytd. Maintains Buy with $7 target.