Wilmar

Wilmar: Stable downstream, but weak upstream. Oilseeds & Grains margins may stay high on recovering China soybean crushing margins, while Consumer Products margins may further improve driven by Rice and Flour business, which turned profitable in 3Q14. However, CPO refining margins may stay weak due to industry overcapacity and as biodiesel margins may gradually taper off (unfavorable economics and as previously secured contracts expire). Upstream earnings may also weigh on results, with the low CPO and sugar price environment. GS maintains Neutral, with TP raised to $3.15 (from $2.90).