Wilmar International: Buy Rating Backed by Operational Improvements and Promising Financial Outlook

Wee Kuang Tay, an analyst from CGS-CIMB, reiterated the Buy rating on Wilmar International. The associated price target was raised to S$3.60.

Wee Kuang Tay has given his Buy rating due to a combination of factors including the improvement in Wilmar International’s core operations, which are benefiting from increased sales, stronger soybean crushing margins in China, and higher crude palm oil prices. The company’s financial outlook is promising, with expected net profit growth of 19% and 11% for the fiscal years 2026 and 2027, respectively, driven by growth in food product sales, improved feed and industrial margins, and a favorable interest rate environment.
Despite challenges in Indonesia, such as legal issues and potential regulatory actions, the management’s proactive approach in addressing these concerns is likely to mitigate investor uncertainty. Additionally, the company’s strategic positioning and operational improvements have led to an upward revision of earnings per share estimates by 6-8% for the fiscal years 2025-2027, supporting a higher target price of S$3.60. These factors collectively underpin the Buy rating, with potential re-rating catalysts including stronger-than-expected performance in China and firm commodity prices.

Based on the recent corporate insider activity of 18 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.