Wilmar (F34.SG) off 0.2% at $6.04 in light trade, underperforming most other Singapore blue chips (STI +0.6%), as China’s latest price-control measures fuel concerns.

Plantation group’s Yihai Kerry unit, one of major edible oil producers, informed by Beijing to hold off raising selling prices over next 4 months in bid to rein in food inflation, according to report in 21st Century Business Herald.

“This is not positive for Wilmar as the group would not be able to pass on the increase in the cost of raw materials,” says AmResearch, which has Buy call with $7.60 target.

Still, UBS, which as Buy call with $7.00 target, says impact on earnings in near term may not be significant as Wilmar had already raised edible oil prices in China by 10%, this segment accounts for only 9.0% of pre-tax profits. Immediate support at $6.00.