Wilmar

Wilmar: Citi says normalization will be the key theme for Wilmar for 2013. Notes while overcapacity and px volatility resulted in negative crush margins and losses for its oilseeds division in 1H12, this should improve in FY13 as China’ inventory of lower-priced beans is consumed and as speculative interest in soybeans has reduced. Says it will continue to monitor Wilmar’s ability to stabilize its oilseeds division in 4Q12 when the co rpts FY12 results on 22 Feb before mkt open. Expects the oilseeds division to recover back to half of peak margin levels by FY14, as Wilmar has the best scale in this segment to ride out the cycle. Highlights that consensus is becoming less negative, with 63% of the Street not positive vs a peak of 86% back in Nov. Citi maintains its Buy rating with TP $4.08.