Wilmar International Limited (WIL) continued with its dismal performance in 2Q14, with reported net profit falling some 21.9% YoY (+5.5% QoQ) to US$170.7m, even as revenue inched up 0.9% YoY (+2.4% QoQ) to US$10517.7m. According to management, the main drag came from margin contraction in Palm & Laurics and losses from associates. Excluding non-operating items, core earnings fell 33.6% YoY and 24.0% QoQ to US$163.1m.

Although 1H revenue of US$20786.4m (+0.8%) met about 45.1% of our full-year forecast, core earnings of US$377.6m (down 32.5%) covered just 32.8%. WIL declared an interim dividend of S$0.02/share versus S$0.025 a year ago. We would be attending the analyst briefing later; but for now, we place our Hold rating and S$3.36 fair value (12.5x blended FY14F/15F EPS) under review.

Source: OCBC Research - 8 Aug 2014