CGS-CIMB analysts Ivy Ng and Nagulan Ravi have maintained “add” on Wilmar, with the same target price of $5.53, although key downsides to the stock include the potential delay or termination to YKA’s IPO and weaker-than-expected crushing or refining margins.

The report follows Wilmar’s announcement on September 24, that its 99.99%-owned subsidiary Yihai Kerry Arawana Holdings (YKA) will be issuing its shares for its China IPO at RMB25.70 ($5.16) per YKA share.

See: Wilmar subsidiary to IPO at issue price of $5.16; expects to raise $2.79 bil

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