Wilmar

Wilmar: DBS slashes TP from $5.80 to $4.25 and downgrades from Buy to Hold on cuts to earnings forecasts and raised beta. Net profit excluding non-operating items was approx US$205.6m, significantly below expectations of US$340-390m and consensus of US$425m. House no long expects Oilseeds & Grains Merc & Processing to contribute much given overcapacity in China, intense competition and still insignificant contribution from flour and milling ops. Highlights 50% capacity expansion in Indo refining for palm oil guided for completion in 3Q12