We are upgrading Wilmar International from Neutral to Buy, but at a lower FV of SGD4.90 versus SGD5.22 earlier, as we trim our FY12 profit forecast to USD1,393.5m from USD1,485.8m previously. Although Wilmar's 1QFY12 results disappointed, we view yesterday's selldown as excessive. Moreover, the poor results mainly arose from its crushing business while other segments actually did well and exceeded our estimates. That said, the lack of earnings visibility was also mainly confined to the crushing business. We have yet to factor in the coming on-stream of 3.5m of refining capacity in Indonesia in 3Q.

Defying  global sentiment. The FBM KLCI  edged up 3.16 pts to 1,588.06 yesterday despite the negative sentiment engulfing global markets. Today's news headlines include:Malaysia's economy is expected to grow by a slower 4.5% in 2012 due to weaker external demand, according to the United Nations Economic and Social Commission for Asia and Pacific, Malaysian Airline System is close to securing up to RM1.5bn in a bridging loan from CIMB Group Holdings, Dialog Group's net profit increased almost 8% y-o-y to RM41.39m for 3QFY12 and IGB Corp will acquire 1.57m sq ft of land in Johor Bahru for RM259.14m or RM165 per sq ft.  On the global front, the US markets closed mixed.

Infineon Technologies (Kulim) SB will invest RM4bn in its operations at the Kulim Hi-Tech Park over a 10-year period. The German company is expanding its wafer fabrication facility, Kulim 2, to include a manufacturing centre for the production of megatrend technologies for energy efficiency and automotive industries.  (Malaysian Reserve)

Malaysian Airline System (MAS) is close to securing up to RM1.5bn in a bridging loan from CIMB Group Holdings, giving it ample time to structure a RM3bn bond for its long-term needs. According to three separate sources, the one-year bridging loan is intended to finance the national carrier's daily operational needs and this would give MAS some time to structure the bonds. (Financial Daily)

IGB Corp's two 70%-owned subsidiaries will acquire 1.57m sq ft of land in Johor Bahru for a consideration of RM259.14m or at RM165 per sq ft. The land, to be acquired from Selia Pantai SB, is for the development of a shopping mall plus other commercial components. Selia Pantai also owns a 30% stake in the two IGB subsidiaries that will develop the land. (Financial Daily)

Pestech International, which plans to list on the Main Market of Bursa Malaysia on 30 May, expects an increase in contribution from its local operations  with the addition of two new contracts worth RM105.7m from TNB recently.  The contracts are JV with TNB to build electric sub-stations in the Sarawak Corridor of Renewable Energy (SCORE) and Teluk Ramunia, Johor. (Financial Daily)

Harvest Court Industries managing director Ng Swee Kiat substantially pared his shareholding in the company, selling more than 10% equity interest over two days, filings showed. In a statement yesterday, Harvest Court said Ng sold shares amounting to about 6% of its share base during the closed period on Wednesday, disposing of 9.26m shares or a 5.1% stake at an average of 71.2 sen apiece. (Financial Daily)

Source: OSK188