Wilmar

UOBKayhian on 12 Nov 2014

FY14F PE (x): 14.6
FY15F PE (x): 11.9

Results above our expectation. Wilmar reported core net profit of US$430m (+>100%
qoq, +9.9% yoy) for 3Q14 and US$807m (-15.0% yoy). Results were above our
expectation mainly due to: Better-than-expected performance from the oilseeds and
grains division. Its pre-tax margin for 3Q14 of US$17.4/tonne is much higher than the
US$0.7/tonne in 2Q14 and US$9.5/tonne in 3Q13. Coupled with the better sales
volume (+5.2% qoq, +2.7% yoy), this division reported pre-tax profit of US$101m
(2Q14: US$4m, 3Q13: US$54m). It has made a turnaround from the losses in 1H14
and reported a pre-tax profit of US$47m (- 59.3% yoy) for 9M14. Maintain HOLD and
target price at S$3.55. This translates into a blended 2015F PE of 13.7x. Entry price
isS$3.05.