Wilmar Seen Able to Navigate Challenging Operating Environment
Dow Jones
Sep 29
0147 GMT - Wilmar International should be able to navigate a challenging operating environment, says UOB Kay Hian's Amerul Iqmal in a note. While elevated commodity prices could pressure the agribusiness' margins in the downstream consumer and tropical oils business, its plantation segment could benefit from stronger palm oil and sugar prices, he says. The company is also using cost efficiency and hedging to manage volatile commodity prices, he says. Still, he flags that the company expects the impact of the stronger El Nino weather pattern on its oil palm fresh-fruit-bunch production to emerge next year. UOB Kay Hian raises its target price to 3.80 Singapore dollars from S$3.50 but maintains a hold rating. Shares rise 0.3% to S$3.62.
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