Broker: CGS International Securities
Date of Report: May 1, 2026
Excerpt from CGS International Securities report.
Report Summary
Stock: Wilmar International (WIL SP)
Action: Hold (No change)
Target Price: S\$3.60
Current Price: S\$3.61
Key Insights:
- Wilmar’s 1Q26 earnings missed expectations due to temporary mark-to-market (MTM) losses from hedging, but underlying business fundamentals remain solid with strong year-on-year sales volume growth across core segments.
- Earnings are expected to stabilise in 2Q–3Q26, supported by higher crude palm oil (CPO) and sugar prices, as well as strong soybean crushing margins and procurement capabilities.
- However, margin upside appears capped by high input costs, rising packaging and freight expenses, and limited pricing flexibility, especially in the consumer pack segment.
- Management remains positive on CPO price outlook, but softer consumer spending could constrain margin recovery in the near term.
- Upside risks include stronger-than-expected soybean crushing margins/utilisation in China and higher commodity prices. Downside risks include unfavourable court rulings, policy changes, and weaker consumer spending.
Actionable Takeaway:
- Maintain Hold with a target price of S\$3.60. Limited upside is anticipated due to capped margins despite stable earnings expectations.
Ticker: WIL SP
above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website : https://www.cgs-cimb.com/sg/en/
