WIL reported a 3Q20 PAT that was well ahead of MKE. This was driven by both volume and margin recovery in China where COVID-19 and ASF are easing. We estimate positive earnings momentum to carry through to 2021E.

While the special dividend announced is lower than expected, there are likely to be further catalysts going forward including share buybacks and additional carve outs and listings.

We have raised our TP to SGD5.40. With 34% upside, maintain BUY.

Source: OCBC Research - 3 Nov 2020