Key risks to Wilmar 1) Gross margin falling from 16.5% to 12.12% due to weakness in benchmark oil prices and higher staff cost. 2) Expect a lower CPO price in 2H10 due to bumper soya harvest from South Americas while palm oil output recovers as the trees move into high production season 3) Funds remain concerned macro risk as Chinese government may intervene on food stables to reign in inflation
*Technical* - Wilmar is trading between the range 6.64 (resistance) and 6.24 (support). Momentum is weak. No signal of a reversal yet.
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