“Until there is better clarity on China’s growth trajectory, we think the prospects of turnaround could see headwinds. New businesses such as central kitchens show promise, but material earnings contribution is some way off,” adds Wickramasinghe.
Maybank Securities analyst Thilan Wickramasinghe has kept his “hold” call on Wilmar International (SGX:F34
) as he recommends investors “wait for better days”. The analyst is also unimpressed with the group’s limited dividend growth.
“Wilmar’s recent 1QFY2024 shows bright spots in consumer and wholesale recovery, especially in China. However, its industrial segments remain under pressure from tightening margins amidst falling commodity prices and weak demand,” he writes in his May 6 report. That said, Wilmar’s food products business should see an improvement in margins moving forward with the drop in commodity prices, he notes.
