Analyst William Simadiputra from DBS maintained a Buy rating on Wilmar International and keeping the price target at S$3.80.
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William Simadiputra has given his Buy rating due to a combination of factors that highlight Wilmar International’s strong market position and future growth potential. The company’s dominance in the palm oil and soy crushing sectors provides a solid foundation for expanding its consumer-branded products and central kitchen businesses. This expansion is expected to benefit from the recovery of China’s economy, which should drive an earnings recovery in 2025.
Furthermore, Simadiputra notes that Wilmar’s current valuation is attractive, trading around levels seen before the YKA IPO when the market viewed it primarily as a commodities trading firm. The focus on profitability expansion and earnings stability is crucial for maintaining the valuation re-rating journey, even amid the challenges faced in 2023. The target price of SGD 3.80, based on a fair P/E multiple, reflects confidence in Wilmar’s ability to navigate these challenges and capitalize on its strategic initiatives.
WLMIF’s price has also changed slightly for the past six months – from $2.182 to $2.310, which is a 5.87% increase.