Singapore Stock Market News

Wilmar International - Proven business model

StockFanatic
Publish date: Mon, 12 Aug 2013, 12:21 AM
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Wilmar's briefing left us feeling more positive on the group as we sense the benefits of lower raw material costs for its downstream division and expansion into value-added palm products can more than offset weaker CPO prices and lower refining margins.

We expect the group to post better earnings in 2H13 vs. 1H13, driven by higher sugar and palm oil earnings. It also highlighted its plans to achieve RSPO certifications for all its estates by FY16. We maintain our earnings forecasts, SOP-based target price and Outperform rating. A recovery in earnings can catalyse the stock.
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