• Wilmar reported its strongest 2Q performance since 2011 in 2Q18 with a core net profit of US$352m. Results were above our expectations as the tropical oils and oilseeds & grains divisions’ margins were stronger than expected.
• The better q-o-q and y-o-y PBT was supported by better crushing volumes and higher crushing margin.
• We may adjust our earnings forecasts post-briefing to take into account contributions from Renuka Sugar after Wilmar increases its stake to 58.34%.
• Maintain BUY and target price of S$3.90.

Source: UOB Kay Hian Research - 14 Aug 2018