Wilmar

Wilmar: OCBC upgrade to Buy with $3.33 TP. House note that Wilmar’s share price has taken a bit of a hit after it reported slightly below par 1H13 results on 7 Aug (core earnings met about 40% of our previous full-year forecast), falling 4.5% to a recent low of $3.0x. But as mentioned in house 12 Aug report, house would be buyers at $3.10 or better, as we believe that most of the risks would have been captured in the price. Keeping fair value at $3.33 (still based on 12.5x blended FY13/FY14F EPS), house note that there is now a decent 10% upside from here. Hence upgrading call from Hold to BUY. Note that an appreciating USD against SGD would also have a modest boost to our fair value.