Wilmar: Has plans to invest Rmb300m ($46m) in grain processing facilities in China's southern province of Yunnan, according to a state-backed Chinese grain agency. The expansion is planned despite pressure on profitability from price controls the government has been relying on to contain inflation. Facilities will include logistics and distribution sites, and processing facilities for grain, potato and walnut products…..
Going forward, Wilmar remains positive on prospects, despite a challenging operating environment in China. Grain processing in China has traditionally been dominated by local companies such as Cofco Ltd. Wilmar’s foray into the wheat-processing sector is only about five yrs old. We note that street has a mix of Buy and Hold calls on counter with a mean TP of $5.85.
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