CGS-CIMB analysts Ivy Ng and Nagulan Ravi have maintained “add” on Wilmar, with the same target price of $5.53, although key downsides to the stock include the potential delay or termination to YKA’s IPO and weaker-than-expected crushing or refining margins.
The report follows Wilmar’s announcement on September 24, that its 99.99%-owned subsidiary Yihai Kerry Arawana Holdings (YKA) will be issuing its shares for its China IPO at RMB25.70 ($5.16) per YKA share.
