Wilmar: Earnings preview. 1Q11 net profit likely fell 14% YoY to US$342m, according to the average estimate of six analysts polled by Dow Jones. Grp was likely forced to partly absorb the impact of higher commodity prices due to the Chinese govt's request to maintain its selling prices, while margins from crushing soybeans are still low. However, Wilmar's outlook is improving and analysts say crushing margins could turn positive soon, easing the pressure on margins…..
Citi note that although house like Wilmar for its integrated business model and strong management team, think shares upside will be within the 5%-10% range over the next six to 12 mths pending the next phase of strong earnings growth expected in two years with the grp's expansion into the sugar, rice and flour businesses. Wilmar is due to report 1Q earnings on Friday.
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