CGS-CIMB ADD $4.58
RHB BUY $4.83
UOB KAY HIAN BUY $4
Wilmar’s earnings resilient, spin-off IPO in China on track
CGS-CIMB Research is reiterating its “add” call on Wilmar International with an unchanged target price of $4.58, representing a 29% upside for the counter. This comes despite a 12.7% y-o-y drop in earnings to US$224.3 million ($316.7 million) for 1QFY2020 ended March. on the back of mark-to-market losses on investment securities. Revenue in the same period was up 4.6% y-o-y to US$10.9 billion, driven by stronger demand for its consumer products but partially offset by a 20% reduction in sales volume of medium pack and bulk products.