0817 GMT - Possible operational uncertainty for Wilmar International in Indonesia prompts Jacquelyn Yow of CGS International to downgrade the stock's rating to hold from add. The Indonesian government's plan to seize more than 1 million hectares of what it describes as illegal palm oil plantations could affect the agriculture company's significant land holdings of about 150,000 hectares in the country, the analyst says. That presents a risk to Wilmar's future crude palm oil production, Yow adds. "Based on our earnings sensitivity analysis, a 5% loss of [Wilmar's] land in Indonesia would result in a [roughly] 1.5% decline in net profit." CGS International lowers the stock's target price to S$3.15 from S$3.47. Shares fall 0.6% to S$3.11. (amanda.lee@wsj.com)
(END) Dow Jones Newswires
April 22, 2025 04:17 ET (08:17 GMT)
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