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Our positive view on Olam (SGX:VC2) continues to strengthen as recent developments reinforce the strategic direction of ofi (Olam Food Ingredients), which will become the group's core business post restructuring.
Investment thesis strengthening
- - Read this at SGinvestors.io -
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At the same time, the sharp correction in cocoa and coffee prices should materially reduce working-capital needs and financing costs, improving cash conversion and returns on capital.
Moving up the value chain; 9% EBIT CAGR in sight
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In Philippines, ofi has formed a JV with WNC Capital Holdings to manufacture proprietary seasonings, marinades, dry mixes and customised savoury solutions, supporting its shift away from lower-margin cost-plus manufacturing towards higher-value customer solutions.
- - Read this at SGinvestors.io -
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Investments support our expectation of a 9% EBIT CAGR, driven by higher value Ingredients & Solutions rather than volume-led global sourcing
Working capital easing; alleviates financing costs
- 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/.
Hussaini Saifee Maybank Research | https://www.maybanktrade.com.sg/ 2026-06-19
Previous report by Maybank:
2026-05-04 Olam - Turning Point, 60% Upside In Sight.
Price targets by other brokers at Olam Target Prices.
Listing of research reports at Olam Analyst Reports.
Relevant links:
Olam Share Price History,
Olam Announcements,
Olam Dividend Payout Dates & Corporate Actions,
Olam News
