not vested
Wilmar: Steadier outlook for the year ahead
Wilmar International Limited (WIL) saw a strong 4Q16 with a 27% and 70% increase YoY for revenue and net profit to US$11.9b and US$561m, respectively, driven by better performance across all segments, contribution from associates as well as recognition of deferred tax assets of US$142.1m.
Looking ahead, while OCBC Treasury Research expects CPO price to ease, production is anticipated to come back.
In addition, Tropical Oils’ downstream business should remain supportive to give decent overall margins.
Against a steadier outlook for earnings across segments, as well as better contribution from Associates/JVs as the group seeks to continue tapping on opportunities, we have adjusted our estimates and raised our fair value estimate to S$3.70 (based on 14x FY17F P/E) (previous: S$3.18).
Source: OCBC