Bumitama Agri Ltd (SGX: P8Z)
BUY for its attractive valuation & dividend yields
Bumitama Agri (BAL) 1Q22 PATMI exceeded expectations. The impact of Indonesia’s export ban on BAL’s sales is still unclear as it has not made new sales in May, in part due to the week-long Raya festivities. But it has sufficient storage capacity to last another month. BAL expects output trend to normalise this year with 1H:2H FFB output ratio at 47:53. The higher output in 2H will help weather fertiliser cost pressures (on a per unit cost basis). We make no changes to our earnings forecasts for now. BAL remains a BUY with unchanged TP of SGD0.98 on 10x FY23 PER, its 5Y mean.1Q22 results lifted by high CPO ASP achieved
Similar to last year, BAL provided an executive summary of key financial and operational information on its 1Q22 performance. It reported a 1Q22 headline PATMI of IDR873b (+424% YoY, +35% QoQ) which met 44%/43% of...
