Report Summary

• Wilmar International’s core operations are improving, supported by higher sales volumes, stronger soybean crushing margins in China, and firmer crude palm oil (CPO) prices.
• Net profit for FY26/27 is forecast to rise 19%/11% year-on-year, driven by growth in the food products segment, improved feed & industrial segment margins, and a lower interest rate environment.
• Despite regulatory challenges in Indonesia, including a US\$712m fine and other legal issues, management’s transparency is expected to help reduce investor uncertainty.
• The report reiterates an “Add” rating with a higher target price of S\$3.60, reflecting better segment margins and commodity prices.
• Wilmar maintains strong ESG credentials, ranking highly in several sustainability indices and implementing robust labour and environmental practices.
• Key risks include further adverse policy or legal outcomes and potential weakness in consumer spending.
• Financial forecasts show revenue and net profit growth, with stable dividends and improving profitability metrics expected over the next two years.
• Peer comparison indicates Wilmar’s valuation and returns are competitive within its sector.