Khor Reports notes and comments:
In a report on
earnings risks at Wilmar’s “oilseeds & grains” business, by
brokerage Kim Eng, dated 5 July, “Times not soy good anymore”, target
price: 3.25 on 1.2x p/b some interesting data points:
a) Soybean crushing utilization at 50% with
continued China SOE expansion (apparently to reduce market share of
foreign companies );
b) anecdotes on soybeans as a form of alternate
financing of real estate/ stock market investments over last 2 years
(page 4). Does this have some sort of parallel with availability of palm
oil below global market prices in China?
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