Can Wilmar sustain its robust first quarter momentum?

Expect a stronger Q2.

Wilmar reported a strong set of results for the first quarter, and analysts seem fairly confident that the company can sustain its momentum despite weak commodity prices.

OCBC analyst Carey Wong noted that Wilmar's long-term fundamentals remain positive while its management is cautiously optimistic that second-quarter performance will be satisfactory.

"Notwithstanding the short-term volatility in CPO prices, management reiterates that the long-term fundamentals are positive, and remain upbeat about its prospects in Africa. Noting that it already has a dominant position in Asia, Africa will be likely market to give it that 'quantum leap'," Wong noted.

Ben Santoso of DBS Vickers stated that Wilmar is in for higher Q2 earnings on back of strong soybean crush margins.

"Tropical Oils pretax contribution may remain weak on lower CPO prices, although volumes should seasonally recover. Sugar pretax contribution should also remain seasonally negative in 2Q15," he noted.

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