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Wilmar's legal overhang causes uncertainties

Samantha Chiew
Samantha Chiew • 1 min read
Wilmar's legal overhang causes uncertainties
Wilmar's valuation could remain lower than its China-listed peers. Photo: stock image
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RHB Bank Singapore is keeping a "neutral" call on Wilmar international with a lower target price of $2.80 from $3.00 previously. The firm has an ESG score of 3.3 out of 4 and roll forward valuation target to FY2026.

The Singapore research group says: "We expect 2026 to be a more balanced year fundamentally, with lower y-o-y crude palm oil (CPO) prices, but geopolitical risks will translate to more volatility. We lower our CPO, but raise our palm kernel (PK) price assumptions for FY2025-FY2027."

"With the corruption case hanging over its head, along with tariff uncertainties, volatile raw material prices and economic uncertainties, Wilmar International’s valuation could remain lower than that of its China-listed peers until earnings undergo a significant turnaround," adds RHB.

Thus far, RHB notes that spot CPO prices have moderated from RM4,600-RM4,800/tonne in 1Q2025 to a low of RM3,780 in May, only to bounce back to RM3,900-RM4,100 currently. The decline was mainly driven by geopolitics in the light of US trade tariffs, wars and crude oil prices falling as a result, all of which pushed CPO prices in the same direction.

As at 11.11am, shares in Wilmar are trading at $2.96, 3.9% lower ytd.

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