Brokers' take

Published Wed, Mar 29, 2017 · 09:50 PM

Wilmar International | Hold Target price: S$3.50 March 29 close: S$3.58 UOB Kay Hian Research, March 29

Upgrade to "hold" after recent share price weakness. Wilmar International's share price has fallen 11.6 per cent from a high of S$3.98 on Jan 2, 2017 to S$3.52 on Tuesday. The drop is possibly due to weakening commodity prices. Sugar prices dropped the most (about 14.1 per cent), followed by crude palm oil spot prices and soybean prices which dropped 11.6 per cent and 6.1 per cent respectively from Jan 2, 2017 to Tuesday. Sugar prices were weighed down by ample supply but weaker demand. The weakening CPO prices were mainly due to the market expecting a strong production recovery but demand growth is lagging. The dip in soybean prices was largely due to better-than-expected production in South America, and the expected higher soybean planting in the US as well. Wilmar's core businesses are still operating as usual and we expect all three key divisions to grow steadily in 2017, supported by higher sales volumes.

Avi-Tech Electronics | Buy Target price: S$0.52 March 29 close: S$0.42 RHB Research, March 29

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to

Companies & Markets


Get the latest coverage and full access to all BT premium content.


Browse corporate subscription here