Broker Name: Maybank Research Pte Ltd
Date of Report: March 10, 2026
Excerpt from Maybank Research Pte Ltd report.
- Wilmar International’s FY25 results were strong, showing 5% revenue growth and a 10% rise in core net profit. The company is forecasted to achieve a 9% CAGR in earnings through FY28 due to solid food product volume growth, stable pricing, and product mix optimization.
- Regulatory risks are fading as major overhangs—including fines and provisions for Indonesia, China, and Pakistan—have largely been addressed. Only minor uncertainties remain, mainly related to Indonesia’s biodiesel policies.
- Wilmar’s balance sheet and cash flow are improving, allowing room for potential dividend increases. A weaker USD is expected to provide an additional earnings boost.
- Management guides for mid-single-digit growth in food products and double-digit growth in new categories like flour, rice, and noodles, with stable pricing and positive refining margins in key markets.
- Despite geopolitical headwinds, Wilmar is expected to maintain stable capex and robust free cash flow, with net debt/EBITDA at a comfortable 1.7x and projected dividend yields around 5%.
- Maybank has upgraded Wilmar to BUY (from HOLD), raised the target price to SGD3.85 (from SGD3.12), reflecting higher earnings forecasts and improved outlook.
Report Summary
- Wilmar International is showing operational resilience with strong recent earnings growth and a constructive outlook through 2028, driven by core food product expansion and reduced regulatory risks.
- The company’s financial health is improving, supporting the potential for higher dividends, while Maybank upgrades its rating to BUY with a higher target price.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research website : https://www.maybank-keresearch.com
