Wilmar

Wilmar: IIFL downgrade to Sell with $4.57 TP. Expect 1Q11 earnings at -67% YoY to US$133m and roughly flat QoQ. Add that macro environment remains hostile, and Wilmar’s risk management hasn’t shown much improvement. House cuts FY11 core earnings forecast by 22% to US$1,284m.

Wilmar: UBS maintains Neutral with $5.70 TP. Highlight that 1Q11 results on 13 May could disappoint. Rival Archer Daniels Midland has reported a 73% drop in Jan-Mar Asian oilseed processing earnings (wilmar holds a 16.4%) and has warned of further downgrades as 2Q11 results could likewise be weak on account of continuous cooking oil price caps in China and oilseed processing margin pressure. Add that earnings catalysts are in short supply this yr.