Wilmar

Wilmar: announced new 51/49 JV with Tereos, to acquire and operate a corn starch facility in Tieling, Liaoning province, with a current annual processing capacity of 700k tons of corn. Both companies previously sealed a partnership in 2011 for wheat based starch and derivatives pdtn. The latest invmt will enable the pdtn of a range of starches based on both wheat and corn for the Chinese market by 2014. Since 2010, China has become the world’s leasing mkt for starch, accounting for 30% of global consumption. The consumption of isoglucose in China has increased 4-fold over the past 6 yrs, climbing to 11% of all sugar consumed. Wilmar continues to express its positive industry view by expanding its China agri and sugar ambitions. The stock trades at 1.2x P/B, 13.6x P/E.