Monday, February 4, 2013

Wilmar

Wilmar: JP Morgan maintains OVERWEIGHT, TP 4.20, Positive 2H12 profit guidance at China Agri on oilseeds margin recovery. c.50% H/H earnings recovery for 2H12 at China Agri-Industries driven by oilseeds margin. Crush margin has held up YTD, further improvement in 2013 likely. House believe both Wilmar and China Agri share prices will react positively on this news. More upside to consensus earnings estimates for Wilmar given the more conservative oilseeds margin assumption imputed by the Street. US$15/MT oilseeds & grains margin assumption for FY13E may still have upside. Every US$10/MT increase translates to 11% increase to Wilmar EPS.

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