Excerpt from CGS International report.

Report Summary

• Wilmar International’s 4Q25 core net profit was in line with expectations, and the company resolved major regulatory and legal overhangs in FY25, including compensation for issues in Indonesia, China, and Pakistan.
• For FY26F, earnings are expected to remain stable, driven by food products and recovering margins, but crushing margins will face moderate pressure due to higher feedstock costs and increased competition.
• The report downgrades Wilmar from Add to Hold with an unchanged target price of S\$3.60, citing a lack of near-term catalysts for significant earnings growth; current valuation reflects these prospects.
• Upside risks include stronger-than-expected margins and commodity prices, while downside risks include adverse legal/policy changes and softer consumer spending.
• Wilmar’s ESG profile is strong, with recognition in global sustainability indices and proactive measures to mitigate forced labour risks, strengthening its sustainability credentials.
• Financial metrics highlight steady revenue and profit growth, robust cash flows, and continued focus on cost control and operational efficiency.