Wilmar

Wilmar: OCBC downgrades to Hold and slashes TP to $3.25 from $3.90. House expect more volatility ahead, with grp’s large exposure to China via its oilseeds crushing and consumer pack businesses, is certainly feeling the impact from the recent slew of sluggish economic data out of the mainland. As such, stock price has been particularly volatile over the past week or so, rising by as much as 7.1% to a recent $3.31 high before retreating by 6.3%. Going forward, continue to expect more volatility in share price, especially if market adopts a less “risk on” approach. In view of this, house reduce valuation peg from 15x to 12.5x, which in turn reduces fair value from $3.90 to $3.25.