CGS International, October 8, 2025
Excerpt from CGS International report.
Report Summary
- CGS International upgrades Wilmar International to “Add” with a target price of S\$3.30, citing that most of the negative impact from the Indonesian Supreme Court’s US\$709m fine has been priced in and the company’s core operations are recovering.
- Wilmar’s China soybean crushing margins are outperforming peers, and its core net profit is expected to improve in 3Q25F and further in FY26F-27F, supported by higher utilisation rates, healthy margins, recovering consumer spending in China, and strong commodity prices.
- Remaining risks include ongoing minor legal and policy issues in Indonesia and consumer demand uncertainty, but these are considered less significant than the recently concluded penalty.
- Wilmar maintains strong ESG credentials, being included in multiple global sustainability indices and continuing efforts to reduce greenhouse gas emissions and improve labour practices.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
