As at 1HFY2024 ended June, Wilmar had US$26.8 billion ($34.6 billion) worth of debt, of which 72.9% was short-term finance required for its origination and merchandising business.
CGS International’s (CGSI) Tay Wee Kuang has kept his “add” call on Wilmar International (SGX:F34
) at an unchanged target price of $3.63, as he sees the company benefiting from a lower finance cost in FY2025 due to the US Federal Reserve’s (US Fed) 50 basis point (bps) cut on Sept 18.
“We believe Wilmar’s profitability could further improve with the start of the interest rate cut cycle,” says Tay in his Sept 20 report.
