Wilmar Int’l 4Q net profit estimates likely to slide 4% to US$425m as margins on selling cooking oil & grains in China are being squeezed by local price controls eveb as revenue is expected to rise 15% to US$7.93b. Oilseed crushing margins remain under pressure with the company forced to absorb higher commodity prices. However, Wilmar may benefit from firmer prices of palm oil as it secured supplies while prices were still low.
Wilmar's share price is likely to underperform the market & peers in 1H2011 due to margin concerns & unhappiness over its recent property investment in China. UOBKH keeps Buy rating with a target price of $7.10. Wilmar is due to report earnings on Feb 23. Stock sitting at crucial $5.25 support now, break below this level will see it drop below $5.00.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment