- We continue to favour Wilmar International (SGX:F34) for its integrated and diversified business model. Valuations are cheap at 11x FY23F P/E – below its China-listed peers’ 20-40x – while its combined stake in Yihai-Kerry and Adani Wilmar is almost double that of its own market capitalisation.
- - Read this at SGinvestors.io -
2023 price assumptions unchanged, 2024 assumptions raised.
- - Read this at SGinvestors.io -
- For 2024, if the El Nino is a moderate one, there would be an impact on supply – although not very significant – while prices could continue to be held back by lacklustre demand. We believe prices could be higher in 2H24 vs 1H24, as the impact of El Nino would only be seen from May/June onwards.
- We are therefore raising our 2024 and 2025 price assumptions to MYR3,900/tonne and MYR3,800/tonne respectively. If the El Nino turns out to be a strong one, we will review our price assumptions.
We maintain our NEUTRAL sector weighting, with a tactically positive trading strategy.
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2023-07-24
Read also RHB's most recent report:
2024-11-12 Wilmar International - Valuations Held Back By China Weakness.
Previous report by RHB:
2024-11-04 Wilmar International - Stronger Volumes, Weaker Margins.
Price targets by 4 other brokers at Wilmar Target Prices.
Listing of research reports at Wilmar Analyst Reports.
Relevant links:
Wilmar Share Price History,
Wilmar Announcements,
Wilmar Dividends & Corporate Actions,
Wilmar News Articles
