Date of Report

October 1, 2024

Broker Name

UOB Kay Hian

Company Overview

Wilmar International is a leading agribusiness group headquartered in Singapore. The company is involved in the production and processing of a wide range of agricultural products, including edible oils, grains, and sugar, and operates a vast network of manufacturing and distribution facilities across Asia.

Recent Developments

The report highlights the significant stimulus measures recently announced by the Chinese government to rejuvenate its economy. These measures are expected to enhance agricultural productivity and boost demand for food and related products, areas where Wilmar is heavily involved.

Revenue Exposure to China

Wilmar has considerable revenue exposure to China, as it is a major supplier of edible oils and agricultural products in the region. The anticipated increase in consumer demand and government spending on agriculture could positively impact Wilmar’s operations and financial performance.

Investment Recommendation

• Recommendation: HOLD
• Current Price (S$): 3.35
• Target Price (S$): 3.25
• Potential Upside (%): (3.0%)

Market Context

With the expected growth in agricultural demand driven by the government’s economic initiatives, Wilmar is well-positioned to benefit from increased consumption of its products. The company’s extensive supply chain and market presence in Asia further enhance its ability to capitalize on market opportunities.

Conclusion

Wilmar International’s strategic focus on agribusiness and its significant exposure to the recovering Chinese economy present a solid investment opportunity. The anticipated growth in agricultural demand and government support positions Wilmar for continued performance and resilience in the coming years.