- We visited Wilmar’s China business that comes under Yihai Kerry Arawana (YKA). We believe Wilmar’s downstream strategy in China through YKA is still in its early stages and is set to boost Wilmar’s profitability and ROE.
- - Read this at SGinvestors.io -
- Meanwhile, the central kitchen concept is expected to contribute to earnings growth as the utilization rate ramps up.
Earnings and ROE improvement is the key strategy.
- Wilmar’s long-term strategy is to generate a more stable top line and revenue and improve its ROE. However, due to the long-term nature of its approach, the short-term results may go unnoticed.
Lower input cost should boost margin in near term.
- - Read this at SGinvestors.io -
- Meanwhile, easing cost pressures from edible oils and soybean may improve margins ahead. While Wilmar posted strong 1Q25 results, further margin expansion should drive its share price higher.
Maintain BUY with target price of S$3.8.
- Read more at SGinvestors.io.
