SINGAPORE (Nov 18): OCBC Investment Research is downgrading Wilmar International to “hold” after warning uncertainty over soybean crushing margins may grow as the trade dispute between the US and China becomes more prolonged.

“We update our USD/SGD assumptions and also lower our P/E slightly from 13x to 12.5x such that our fair value estimate slips from $3.51 to $3.42. With limited upside, we downgrade our rating to hold,” says analyst Low Pei Han in a Friday research report.

Low says management expect its margins to be impacted by lower global soybean crushing margins due to a decline in soymeal demand in China as the country reduces the percentage of it in animal feed.

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