Wilmar Int’l

Wilmar Int’l: Stanchart has identified Wilmar as the key stock to own in 2013 and raised its target price to $4.15 from $3.50, citing an earnings turnaround in oilseeds and grains processing margins to US$10/mt in 2013 and $US$20/mt in 2014 (vs long term average of US$23) due to a reversal of negative commodity speculation and financing effects. House also believes the shift in investment towards consumer, palm, sugar, Indonesia, Africa and India, will change the mix and lift returns. Shares are also down 37% ytd, resulting in compelling valuation of 1.2x P/B or nearly 2 std deviations from mean. This also appears to have prompted some rare buying by its founder and major shareholder Kuok Khoon Hong, who picked up 2.63m shares @ $3.16 on 14 Nov, his 2nd purchase sine the Oct 08 lows.