Singapore Stock Market News

Olam International - Commodity & Currency Volatility

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Publish date: Mon, 17 Aug 2015, 06:04 PM
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• 2Q15 in line, with 1H operational profit at 49% of our FY15F.

• Expect 2H to be weaker from seasonality, FX volatility in emerging markets & one-off restructuring charges in Uruguay. Cut EPS by 15-20% for recent movements in commodity prices & currencies.

Maintain HOLD. Lower TP to SGD1.90 from SGD2.07, now at 9x P/E instead of 11x. Prefer Wilmar in sector.
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