(BUY/S$4.79/Target: S$6.00)
FY12F PE (x): 14.0
FY13F PE (x): 11.5
Continued to gain market share in China. Wilmar’s 2011 annual report showed its strong market
position in the consumer pack cooking oil in the emerging markets, especially in China with a 50% market share, up from 2010’s 45%. It added 10 new soybean crushing plants in China and two more in Africa, resulting in a total crushing capacity of 20m tonnes p.a., up from 18m tonnes p.a. in 2010. This enhances our view that Wilmar provide the best proxy to the rising consumerism in emerging markets.
Maintain BUY with target price of S$6.00, based on SOTP valuation by assigning 15x 2013F PE for palm oil and sugar refining, 18x PE for upstream operations and China consumer packs, and 13x PE for the competitive oilseed and grain business.
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