Brokers' take

Wilmar International | Buy (maintained) May 16 close: S$3.55 Target price: S$3.94 RHB Research Institute, May 16

Following a briefing for analysts, we are more upbeat on second quarter results.

According to management, soybean crush turns positive this quarter, as utilisation rate increased from the first quarter. This is largely due to consolidation in the crushing industry following the outbreak of African swine fever and improving demand due to cheap soybean meal prices. On top of that, the group is likely to benefit from lower input costs on lower Brazilian soybean prices.