CGS-CIMB analyst Wee Kuang Tay reiterated a Hold rating on Wilmar International (WLMIF – Research Report) yesterday and set a price target of S$3.15.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Wee Kuang Tay’s rating is based on a combination of factors affecting Wilmar International’s performance. The company’s first-quarter results were generally in line with expectations, although there was a slight decline in core net profit due to lower sales volumes in the feed and industrial segments. Despite improved soybean crushing margins and increased demand for soybean meal, the earnings outlook for the second half of 2025 remains uncertain due to global volatility.
Additionally, Wilmar International faces challenges such as potential issues in Indonesia, including land confiscation and a bribery investigation, as well as the impact of new tariffs introduced by the US. These factors contribute to a cautious outlook, leading to the decision to maintain a Hold rating. The target price is set at S$3.15, with potential upside from stronger-than-expected consumption in China and downside risks from legal and trade-related issues.