Broker: Maybank Research Pte Ltd
Date of Report: May 4, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
Stock Focus: Olam Group (OLG SP)
Action: Initiate BUY
Target Price: SGD1.60 (+60% upside)
Key Ideas:
- Olam Group is undergoing a major restructuring, transitioning from an agri conglomerate to a focused, global food ingredients platform (ofi).
- The restructuring is expected to unlock over SGD5 billion in capital, with SGD4 billion already announced.
- Proceeds from asset sales (Olam Agri, Mindsprint, ARISE P&L) will help deleverage the group and are likely to be distributed as special dividends, with an estimated 18% near-term yield and 6–12% annual yield over FY27–30.
- Post-restructuring, Olam will be led by ofi, expected to deliver SGD1.1 billion EBIT per annum with operational tailwinds (cocoa and coffee price normalization supporting cash flow and lower financing costs).
- The market is undervaluing ofi, trading at only 2–2.5x EV/EBIT, compared to global peers at 8–15x, suggesting deep value and upside potential.
- Major risks include delays in asset monetisation, commodity price volatility, and interest rate sensitivity, but risk-reward is skewed positively.
Implications:
- Investors can expect both regular dividends and substantial special dividends as asset monetisation progresses.
- Olam Group offers a rare combination of deep value, restructuring-led cash returns, and a simplified corporate structure focused on shareholder value.
Ticker: OLG SP
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 Pte Ltd website : https://www.maybank.com/investment-banking
