Wilmar

Wilmar: UBS reiterate Neutral Call with $5.70 TP. Tip China to extend price caps and govt unlikely to remove price caps on food anytime soon. With selling prices capped and raw material costs high (CPO, soybean), profit margins will remain under pressure for grp’s Chinese consumer business this year. Expect some near-term share price weakness due to concerns about duration of the cap and other regulatory intervention.