Wilmar International - Maybank Research 2023-07-07: No Light Yet; Soft China, Low CPO Prices Are Downside

• We expect NPAT momentum to decelerate further when Wilmar International (SGX:F34) reports 2Q23 earnings on 11 Aug. See earnings calendar.
• - Read this at SGinvestors.io -
• A continued weaker growth outlook in China coupled with seasonal production peak for palm oil (which could weaken prices further), should limit room for positive earnings momentum in 2023E, in our view. We lower Wilmar's target price to S$3.99 and with 10% upside, HOLD.

China demand growth slow

• - Read this at SGinvestors.io -
• We expect volumes to continue to see weakness following -11% q-o-q in 1Q23 here. Recall in 1Q23, Feed & Industrial Products volumes fell -15% q-o-q. Cooling Chinese growth may continue to drive downside on this segment, in our view.
• Nevertheless, falling input costs from palm oil, soybeans, should help margins. We have upgraded this segment’s PBT/MT by 33% each in 2023-24E.

Softer CPO price expectations

• Read more at SGinvestors.io.

Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.

Read also Maybank's most recent report:
2025-05-02 Wilmar International - 1Q25 An Inline Start.

Previous report by Maybank:
2025-02-24 Wilmar International - Signs Of Spring, improving China Prospects Should Drive Growth.

Price targets by 2 other brokers at Wilmar Target Prices.

Listing of research reports at Wilmar Analyst Reports.

Relevant links:
Wilmar Share Price History,
Wilmar Announcements,
Wilmar Dividend Payout Dates & Corporate Actions,
Wilmar News