11/11/2011 (Reuters) - Kim Eng Securities has downgraded its rating on the world's largest listed palm oil firm Wilmar International to sell from hold and lowered its target price to S$4.50 from S$5.31.

STATEMENT:

Wilmar International missed earnings expectations despite an almost 24 percent jump in net profit from a year earlier due to a loss from equities investments it made three years ago, foreign exchange losses and weaker margins from its consumer product business.

Kim Eng said that the possible hard landing or slowdown in China's economy will affect the firm adversely and the brokerage house have tweaked its forecasts for 2011 financial year to reflect the one-off items and lower midstream margins.

As such, Kim Eng has has reduced its forecasts for Wilmar's 2012-2013 financial year by 25 to 35 percent respectively.

At 0355 GMT, shares of Wilmar were traded 4.5 percent lower at S$5.12, underperforming the 3 percent fall in the broader Singapore market .