UOBKayhian on 1 Aug 2013
Preview: Earnings likely to be lower qoq. The least price volatility market should lead to more stable earnings
growth on volume expansion.
(WIL SP/BUY/S$3.15/Target: S$3.80)
FY13F PE (x): 11.9
FY14F PE (x): 10.1
Management has guided for a more challenging 2Q13 since 1Q13 results briefing, ie the poorer results are unlikely to be a surprise to the market. The main challenges are weaker outlook for soybean crushing, where
utilisation could be affected by the bird flu breakout in China early 2013. Subsequently, the breakout of The Yellow Canopy Syndrome could affect the sugar yield in Queensland, Australia. Sugar contribution should be
stronger in 2H vs 1H and to-date there is still no concrete information on the potential yield impact. Maintain BUY with target price of S$3.80 based on the sum-of-the parts (SOTP) method, implying a blended PE of 14.5x 2013F and 12.5x 2014F.
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