Noble

Noble : is down 1.3% at $1.175, underperforming the STI's 0.2% decline, likely taking a double hit from risk-off sentiment and Wilmar's disappointing results. Wilmar's 1Q12 results were weak, with the oilseeds and grains segment reporting a US$52.5 m pre-tax loss on weak crush margins in China amid a challenging operating environment. DMG notes, soybean crushing is one of Noble's key divisions within its Agriculture segment. Though Noble has a number of other divisions such as sugar, cotton, coffee and cocoa within its agri segment, the house believes that a weak crushing environment in China, coupled with contract defaults from the cotton industry over the previous few quarters could mean an unexciting period for Noble's agri segment. Noble's results are due after market close. The house keeps a Neutral call with TP $1.30. The year-to-date low at $1.08 may offer a near-term support.