UOBKayhian on 13 Feb 2015
FY15F PE (x): 11.8
FY16F PE (x): 10.4
Results above expectations. Wilmar reported core net profit of US$413m (-4.0% qoq,
+16.9% yoy) for 4Q14 and US$1,220m (-6.4% yoy) for 2014.
Sugar division (7% of PBT) supported by merchandising and procession operations.
Pre-tax profit grew 6% yoy as strong volume growth at its merchandising and
processing operations offset losses from sugar milling operations which were affected
by lower prices and negative marked-to-market effect of the ongoing sugar hedges as
well as the inclusion of the Myanmar milling operation which commenced crushing in
late-Dec 14. Nevertheless, Due to the delay of the harvesting progress, milling volume
in 4Q14 was much higher yoy but lower qoq as highest volume was done in 3Q14.
Maintain HOLD and target price at S$3.55. This translates into a blended 2015F PE of
13.7x. Entry price is S$3.05. More updates and outlook after the analyst briefing today.
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