“The consumer downstream business should continue to bear good margins and ROE in the future, especially when Wilmar’s consumer products division’s performance recovers from higher cost pressure via efficiencies or price hikes,” says Simadiputra.
With minimal earnings downside risk, Wilmar International deserves to trade at a premium to its plantation peers’ PE multiples, says DBS Group Research analyst William Simadiputra.
In his March 21 report, Simadiputra says Wilmar’s packaged consumer products’ margins and earnings can help to buffer its earnings performance when commodity prices reverse.
