Wilmar

Wilmar: says China govt officials have requested the co to hold off increasing prices of cooking oil. The policy, which also affects other Chinese producers of household essentials, effectively extends a price cap first imposed in Nov that the companies at the time had believed would expire around Mar. The duration of the caps isn't clear...

While news is negative, the impact to Wilmar’s consumer pack margins may be mitigated somewhat by declining input prices. Ytd, CPO prices have fallen by ~9% to RM 3399/mt. Meanwhile, Beijing has indicated it is mindful of the need to accommodate companies' thinning margins even as it seeks to contain sharply rising food inflation.
Stock trades at 20.6x P/E, close to main competitor China Agri at 21.6x P/E.
Recent Street ratings mostly at Buy with TP ranging btwn $5.61-6.40.