Phillip Securities Research in an Apr 13 research report says: "Improving fundamental indicators; CPO price increases (average increase of 3% sequentially over 4QFY11), China crush margin improves (back to positive in mid-Mar), China inflation easing off (within target range of official 4%).
"Wilmar share price has dropped 20% from the recent peak of $6.05 after 4QFY11 result announcement. 4QFY11 was not a strong quarter and even showed weakness in the major revenue contributors.
"In view of the improving fundamentals, we have revise up our FY2012E revenue and net profit by 2.4% and 16.1% respectively. However this still represents a y-o-y net profit decline of 4.3% because competition and overcapacities issues are still present which erode the operating margins. Target price raised to $4.98. NEUTRAL."
"Wilmar share price has dropped 20% from the recent peak of $6.05 after 4QFY11 result announcement. 4QFY11 was not a strong quarter and even showed weakness in the major revenue contributors.
"In view of the improving fundamentals, we have revise up our FY2012E revenue and net profit by 2.4% and 16.1% respectively. However this still represents a y-o-y net profit decline of 4.3% because competition and overcapacities issues are still present which erode the operating margins. Target price raised to $4.98. NEUTRAL."
No comments:
Post a Comment