UOB Kay Hian has maintained its buy call on Wilmar International with a target price of $5.35, as Yihai Kerry Arawana Holdings (YKA) listed on the Shenzhen Stock Exchange ChiNext Board on Oct 15.
Analysts Leow Huey Chuen and Jacquelyn Yow said the listing price of YKA listing price is at the higher end of expectations at RMB25.7 ($5.19) per share, valuing at 2019 recurring profit of 31.1x price-to-earnings ratio (PE).
YKA’s market value makes up about 83.5% of Wilmar’s current value and presents a 20% price increase. As such, YKA’s market value would be the same as Wilmar, and YKA’s share price performance upon listing would be a catalyst to Wilmar’s share price.
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