Wilmar

Wilmar: Goldman notes that the 10.5% tax differential btwn current CPO and RPO tax is very positive for Indonesian refining margins. All things equal, the house estimates this could boost margins by ~US$105/t, based on US$1000/t palm oil price. Estimates that 70% of Wilmar’s refining capacity is in Indonesia, and that it processes ~65% of its Palm and Laurics volumes, which implies that margins could be US$48/t higher (70% * 65% * US$105/t). Believes the mkt will take this policy change positively. Assumes that even if Wilmar only captures a quarter of this additional margin (ie US$12/t), 2011-13E EPS forecasts for Wilmar could be raised by 3-12%. Estimates that every additional US$10/t margin for Palm and Laurics could boost FY12E EPS by a further 10%. House keeps Neutral rating and TP $5.60.