Friday 8 May 2015

Wilmar International

UOBKayhian on 8 May 2015

FY15F PE (x): 11.1
FY16F PE (x): 10.3

Results within expectations. Wilmar reported 1Q15 net core profit of US$263m (+23%yoy,-36% qoq). Results came in line with our net profit expectation of US$250m- 300m. The company has three new segmental classifications: Tropical oil (TO), oilseeds & grains (O&G), sugar. The new segmental disclosure only showed external sales, and eliminated intersegmental sales to better reflect the business integration. Maintain HOLD and target price of S$3.65. The target price is derived from a SOTP valuation and translates into a blended 2015F PE of 12.6x. Entry price is S$3.10.

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