Shares in Wilmar International jumped 5% to their highest since July after the palm oil giant posted better than expected results said it planned a listing of its operations in China, its biggest market.

The group, the world's biggest listed palm oil company, said it planned either late this year or early in 2010 to float its China business in either Hong Kong or, preferably, Shanghai.

Kuok Khoon Hong, the Wilmar chief executive, said that the move would tap a fresh vein of investor interest in a country it views as a growth opportunity.

"With our increasing presence in China's food sector, it is strategic to have more Chinese investors participate in our China growth plans through a listing," he said.

Deal plans

Wilmar also plans "organic growth or mergers and acquisitions" in China, where it is already the largest oilseeds crusher, to exploit its growing demand for vegetable oil products.

"With rising affluence and rapid urbanisation, China will consumer increasing quantities of high quality processed agricultural commodities," Mr Kuok said.

Wilmar generated $14.3bn in revenues last year from China, where it runs more than 140 processing plants and 1,500 distribution warehouses.

Canny trading

In the first quarter, Wilmar's revenues slid 31% to $4.96bn, led by its main Palm & Laurics division, which was hurt by weaker palm oil prices.

However, timely purchases near the bottom of the market, and sales at high prices, helped the division pre-tax profits.

With higher profits Consumer Products, lower Indonesian export duties and a cut in freight costs also chipping in, group profits rose by 10.8% to $380.0m.