Wilmar

Wilmar: On its upcoming 4Q13 results due 20 Feb, UOB Kay Hian expects to see substantially lower contribution from sugar milling as the bulk of the milling was done in 3Q13. Other divisions are expected to be flat qoq although plantation is likely to have better qoq earnings on higher production and ASP, while biological valuation should have little impact on earnings. Potential share price catalysts include sustainable earnings stability to rebuild investors’ confidence on the counter and a strong turning point in the Chinese soybean crushing market brought about by increased utilisation¸ which will deliver sustainable margins. UOB Kay Hian maintains BUY with $4.20 TP, implying a blended PE of 13.8x 2014F.