OCBC upgrades Wilmar (F34.SG) to Buy from Hold, and keeps its fair value estimate at $6.48.

The house says in reaction to Wilmar’s maiden entry into the China property market, via a 35%-JV partnership with HK property firms Kerry Properties (40%) and Shangri-la Asia (25%), WIL’s share price tumbled 16% to a recent low of $5.50, weighed by worries that management may be losing its focus.

“But we think that these concerns - while valid - are overwrought, given Wilmar’s prudent management style and good execution track record.” says OCBC, adding Wilmar reiterates that it remains focused on its core agri business, “which continues to do quite well, although it may be facing some increased volatility due to the recent commodity price spikes.”

The house adds, Wilmar regards its property investment as small (but potentially scalable), and it is not expected to take up much management time. Shares up 0.7% to $5.74.