Wilmar International

UOBKayhian on 17 Jan 2014

FY13F PE (x): 12.2
FY14F PE (x): 10.5

Results should be in line with expectation. 4Q13 net profit is expected to be marginally
lower qoq and yoy at US$380m-390m (vs 3Q13: US$390.9m, 4Q12: US$400.9m).
Overall, we are expecting all the divisions to deliver a flat or marginal qoq growth in PBT,
except for the sugar division. As highlighted in our 3Q13 results note, 80% of the milling
& crushing of sugar canes were competed in 3Q13.

Upstream operation PBT should be higher on better volume and pricing. PBT
contribution in 4Q13 is expected to be better qoq supported by a marginal 3-4% qoq
increase in FFB production and better selling prices. FFB in 4Q13 experienced a
recovery as yield recovered from the stress period in the previous two quarters. ASP will
be better as CPO spot prices advanced from RM2,300/tonne in early Oct 13 to
RM2,600/tonne in Nov and Dec 13.

Maintain BUY with target price of S$4.20 based on the sum-of-the-parts method,
implying a blended PE of 13.8x 2014F.