Wilmar International moves up on rising palm oil prices

Wilmar International, which completed its reverse takeover of Singapore listed Ezyhealth earlier in August has been targeted by institutional investors for its large expanse of agri-business paricularly in the palm-oil sector, which is in favour due to increasing palm oil prices. Today, Wilmar became the most heavily traded stock in the Singapore Exchange, rising from S$1.12 to close at $1.23. This came after ABN-Amro placed a target price of S$1.52 for the stock as it forecasts a 3 year 51% CAGR in earnings.

In addition to the 'buy' rating, Wilmar is also particularly noted for its production of one of the world's largest palm oil biodiesel plant that could have a capacity of up to 250,000-tonne in Sumatra, Indonesia. This factor could potentially increase investor's interest in the company due to the company's strategy of entering the alternative energy markets. Just last week, another public-listed company, Advanced Holdings also rose on heavy trade upon its application to build a biodiesel plant in Malaysia.