Wilmar (F34.SG) is off 0.2% at $5.94, as investors pay little heed to its investment in a Nigerian food ingredients business with PZ Cussons (PZC.LN).

Its shares are down 13.5% since the release of weak 3Q10 results in November, due to the persistent risk of more margin pressures on its edible oil and oil seeds crushing businesses.

Wilmar’s Nigeria investment involves making products like edible oils and nutritional spreads using ingredients from a palm oil refinery to be jointly built by both parties and completed within 2 years.

“Although earnings contribution from Nigeria is not likely to be immediate and significant in the short term, we believe that Wilmar could be focusing on the African continent as its next growth driver. This is due to Africa’s large population,” says AmResearch, which has a Buy call and a $7.60 target for the stock.

Orderbook quotes suggest the price is likely to hold below $6.00.