Wilmar International Limited (WIL) reported a 7.6% YoY slide in revenue to US$10,649.3m, mainly due to lower commodity prices; reported net profit tumbled 34.7% to US$275.9m, mainly due to MTM (marked to market) losses of US$78.9m arising from its investment securities.

But excluding these and other one-off items, core earnings would have come in around US$359.0m, down a smaller 16.5%. 9M15 revenue fell 9.2% to US$29,345.5m, meeting 69% of our full-year forecast, while reported net profit slipped 4.8% to US$718.9m; but core earnings rose 1.1% to US$816.0m, or about 70% of our FY15 estimate.

Going forward, management remains optimistic that 4Q15 performance will be "satisfactory". We will be speaking with management later; for now, we place our Buy rating and S$3.17 fair value under review.

Source: OCBC Research - 12 Nov 2015