SINGAPORE (Mar 30): DBS Group Research has a “buy” recommendation on Wilmar with a lowered target price of $4.00 from $4.60 previously.

Wilmar’s recent share price correction has pulled down its valuation to an attractive FY20 price-to-earnings (PE) of 13.3 times, close to -1SD of its five years PE. The stock is also trading below its book, at a FY20 price-to-book ratio of 0.8 times.

With uncertainties surrounding the Covid-19 outbreak, the market has stripped out the potential upside from the listing of its China operations with the group’s current PE value. Nonetheless, the listing is still on track but has been slightly delayed to 3Q20.

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