3 industry woes Wilmar must hurdle by 1Q13

More urgent concerns than the 8% price hike.

According to Phillip Securities, Wilmar share price has increased significantly recently. The company’s share has appreciated by about 13% since our rating upgrade on 12 November 2012 at S$3.17.

Similarly, CPO prices have also increased by about 8% over the past one month. Meanwhile, China’s soybean crushing margin went back to negative region again since mid-Oct, indicating that the soybean crushing situation in China still remain difficult.

Here's more from Phillip Securities:

We believe CPO price will continue to gain some strength in 1Q13 before fading gradually going into 2Q13 amid: 1) seasonally weak CPO demand in absence of major celebrations/festivities in Asia; 2) stronger CPO supply production coming from both Malaysia (due to recovery from lagged El Nino impact) and Indonesia (due to improving plantation age profile); and 3) record-high palm oil stockpile at the start of 2013.

Despite lower edible oil prices, we do not expect these to have much of a negative impact on Wilmar albeit revenue may fall. Nonetheless, being a significant downstream player, the group may benefit from lower feedstock prices. In fact, based on our estimates, it still sources around 55% of its requirements from third party plantation companies for its Palm & Lauric business.



More From Singapore Business Review
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3542+0.003+0.22%
    USDSGD=X
    1.5258-0.0012-0.08%
    EURSGD=X
    1.7941+0.0114+0.64%
    GBPSGD=X
    74.1210+0.012+0.02%
    SGDJPY=X
    5.7246-0.0109-0.19%
    SGDHKD=X
    2.9829+0.0071+0.24%
    SGDMYR=X
    9,784.7578-31.9463-0.33%
    SGDIDR=X
    4.9148+0.0014+0.03%
    SGDCNY=X
    1.0326+0.0037+0.36%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,333.10-13.00-0.97%
    GCZ16.CMX
    18.64-0.28-1.49%
    SIU16.CMX
    101.38-2.51-2.42%
    ^XAU
    2.10-0.02-0.71%
    HGU16.CMX
    47.56-0.54-1.12%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.13-0.01
    ^FVX
    1.55-0.01
    ^TNX
    2.23-0.01
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.1290.0000.00%
    N21.SI
    0.250.00-1.96%
    5ME.SI
    0.60+0.04+6.57%
    5TP.SI
    0.99-0.02-1.98%
    Y92.SI
    0.156+0.007+4.70%
    AFC.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.30+0.06+22.45%
    T18.SI
    0.15+0.02+15.38%
    5TI.SI
    0.225+0.025+12.50%
    Y35.SI
    0.51+0.05+12.09%
    BHU.SI
    0.162+0.017+11.72%
    QS9.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.011-0.115-91.27%
    QF6.SI
    0.23-0.17-42.50%
    AWI.SI
    0.205-0.055-21.15%
    I06.SI
    0.45-0.10-18.18%
    BFK.SI
    0.385-0.085-18.09%
    E8Z.SI