Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-Wilmar Q2 earnings may disappoint-Maybank

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STOCKS NEWS SINGAPORE-Wilmar Q2 earnings may disappoint-Maybank Jul 5th 2012, 02:43 Wed Jul 4, 2012 10:43pm EDT Palm oil firm Wilmar International's second quarter earnings may disappoint investors, as an expected recovery in the oilseeds and grains segment may not materialise, said Maybank Kim Eng. By 0232 GMT, shares of Wilmar were 1.4 percent lower at S$3.64, and have plunged 27 percent so far this year, versus the Straits Times Index's 11 percent gain. Wilmar is the worst performer on the Straits Times Index year-to-date. The oilseeds and grains segment, which made up 21 percent of Wilmar's profit before taxes last year, could continue weighing on its earnings if the industry sees over-capacity, Maybank said. It has a 'sell' rating on Wilmar with a target price of S$3.25. Maybank cited industry sources as saying China's soybean crushing utilization rate is at about 50 percent, and with state-owned companies continuing expansion, over-capacity could hurt even efficient producers. "We believe the market is still too optimistic on Wilmar's profitability, on the premise that first quarter losses in this segment are a one-off. These hopes may be dashed following the next set of results and consensus estimates should continue adjusting downwards," said Maybank. 1034 (0234 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) ************************************************************ 9:54 STOCKS NEWS SINGAPORE-CIMB upgrades Ho Bee to neutral CIMB Research upgraded property developer Ho Bee Investment Ltd to neutral from underperform, citing attractive valuations as it trades at 0.5 times its book value, below its historical average of 0.9 times. By 0142 GMT, Ho Bee shares were 0.8 percent higher at S$1.245, and have surged 21.5 percent so far this year, compared with the FT ST Mid Cap Index's 17 percent gain. However, the brokerage cut its target price for Ho Bee to S$1.20 from S$1.28, citing slow sales of new units at its high-end property in Sentosa Cove, Singapore. "We expect the sale of new units to remain slow as foreigners stay out of the market post-implementation of the additional buyers' stamp duty," said CIMB in a report. It added that Ho Bee's shares could see a re-rating if sales of its China projects are stronger-than-expected. 0944 (0144 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) Link this Share this Digg this Email Reprints

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