Bumitama Agri

Bumitama Agri $SGX-P8Z
Research by Maybank
Add (Maintained) - Target Price SGD 0.88

"Post 1H22 results briefing"

1H22 results were boosted by record CPO price and lower-than-expected cost. There is upside risk to earnings if BAL’s revised FFB growth guidance of 16-18% YoY materializes for FY22E. Else, we continue to expect earnings to soften in 2H22 following recent CPO price correction and higher fertiliser cost expectations. Trading at single-digit PER offering over 6% dividend yields, BAL remains a BUY with SGD0.88 TP on 8x FY23 PER, - 0.5SD its 5Y mean. Its interim DPS of SGD0.0125 will go ex-date on 6 Sept.

Analyst(s):
Ong Chee Ting, CA
ct.ong@maybank-ib.com

Bumitama Agri $SGX-P8Z
Research by Maybank
Add (Maintained) - Target Price SGD 0.65

"1H22 results outperformed expectations"

Despite Indonesia’s export ban and restrictions, BAL’s 1H22 core PATMI beat ours/consensus expectations on better-than-expected CPO ASP, low unit cost, and strong output. Going forward, we expect earnings to soften in 2H22 following recent CPO price correction and higher fertiliser cost expectation. Still, BAL remains a BUY given its single-digit PER and attractive dividend yields. Following our earnings upgrade, our TP is raised to SGD0.88 (from SGD0.78) on unchanged 8x FY23 PER, -0.5SD its 5Y mean.

Analyst(s):
Ong Chee Ting, CA
ct.ong@maybank-ib.com

$SGX-F34 $SGX-EB5 $SGX-P8Z $SGX-5JS all at 1 yr high/near 1 yr high.