Wilmar: CIMB note that Archer Daniel Midlands (US Stock) last night reported that its oilseed operating profit in Asia, principally reflecting its share of Wilmar’s results, slipped US$36mYoY to US$47m in 4Q10, which signals that Wilmar’s upcoming FY10 results may disappoint and account for only 92% of house FY10 current estimate and 90% of consensus….
Tips poorer performance could be due to lower profit margins from its soybean crushing and
consumer pack businesses as well as weaker earnings from its associates in China. House has $5.80 TP on grp with neutral call.
Wilmar: Archer Daniel Midlands last night reported that its oilseed operating profit in Asia, declined US$36m to US$47m in 2QFY11 ending Dec, reflecting its 5.3% share of Wilmar’s results. This suggests that Wilmar's upcoming 4Q10 results may disappoint. The poorer performance could be due to lower profit margins from its soybean crushing & consumer pack businesses in China, which could explain its recent share-price weakness.
Stock is however, grossly oversold & bouncing off support at $5.25.
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