Olam's 2Q09 core net profit of S$47.5m (+25%yoy) was in line with expectations, forming 26% of our FY09 estimate and 25% of consensus. Reported profit of S$103.4m includes an exceptional gain of S$55.9m from convertible bond buybacks. Management's guidance mirrored that issued in 1Q09, expecting food ingredients to remain resilient while industrial raw materials could suffer lower demand. Our core EPS estimates are intact. Risks of losses from unhedged inventory and defaults by customers remain high. At 8.9x CY10 P/E, the stock is expensive compared with peers. Our target price remains S$0.97, based on 6.4x CY10P/E. Maintain Underperform.