With the corruption case hanging over its head, along with tariff uncertainties, volatile raw material prices and economic uncertainties, Wilmar’s valuation could remain lower than that of its China-listed peers until earnings undergo a significant turnaround.
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Spot CPO prices have moderated.
Spot CPO prices have moderated from MYR4,600-4,800/tonne in 1Q25 to a low of MYR3,780 in May, only to bounce back to MYR3,900-MYR4,100 currently. The decline was mainly driven by geopolitics in the light of US trade tariffs, wars, and crude oil prices falling as a result, all of which pushed CPO prices in the same direction.
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What’s next for CPO prices?
We expect CPO prices to remain volatile given the ever-changing geopolitical situation. Fundamentally however, global supply and demand will likely be more balanced in 2026F, as supply improves, while demand should pick up given the more attractive relative prices.
Supply of 17 oils and fats complex is expected to improve y-o-y.
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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
