Wilmar

Wilmar: Maybank-KE reiterate Buy with a street high TP of $4.52. Continue to like Wilmar for its fully-integrated and well-diversified agri-business model, dominant global market positions in palm oil plantation/processing and soybean crushing, as well as its foothold in China and India, two of the most important consumer markets in the World See three key catalysts for the stock: (1) margin stabilisation in the Oilseeds & Grains (O&G) division, (2) low CPO price environment, and (3) structural improvement to group ROA on rationalised asset allocation. We project EPS to increase at 14.6% CAGR over the next three years, comparable to the 15.4% CAGR seen in the past five years. Therefore, argue that the stock’s current deep valuation discount of 27% to its historical average is too excessive.