Analyst Wee Kuang Tay of CGS-CIMB maintained a Sell rating on Wilmar International, retaining the price target of S$2.70.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Wee Kuang Tay has given his Sell rating due to a combination of factors impacting Wilmar International. A significant reason is the recent Indonesian Supreme Court ruling, which has led to a substantial financial penalty for Wilmar’s subsidiaries, amounting to approximately US$709 million. This penalty is expected to cause a notable impairment in the company’s third-quarter financial results for 2025, drastically reducing the forecasted full-year net profit.
Additionally, the financial strain from this ruling is anticipated to decrease Wilmar’s interest income and potentially lower its dividend payouts compared to previous years. Although there is an ongoing investigation into rice mislabeling, its financial impact is considered less severe than the palm oil case. These factors collectively contribute to a negative outlook on Wilmar’s financial performance, justifying the Sell rating.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WLMIF in relation to earlier this year.