Wilmar: IIFL maintains Sell with $4.57 TP. Tip that share price’s post-results rally was misguided, as over 1/3 of its reported 1QFY11 earnings (US$387m) was a forex gain. Also have doubts over its reality-defying 1Q China crushing margin of US$55 per ton, which was the 2nd highest in its history, 4x China’s average, and higher than its western peers who sell to freer markets……
Add that the hostile environment – stubbornly high soybean prices combined with continuing price intervention of the inflation-obsessed Chinese govt, will likely persist in 2011. House maintains FY11 core earnings forecast of US$1.3b.
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