- Lumpy unrealised FX loss, fair value loss on biological assets, and net inventory build-up due to delayed shipment hurt Bumitama Agri (SGX:P8Z)'s 4Q22 profit that led to lower 2H22 headline PATMI. Else, Bumitama Agri's FY22 historic core PATMI met our/consensus estimates.
- - Read this at SGinvestors.io -
- Following our EPS revision, our new target price for Bumitama Agri is S$0.84 (previously S$0.89) on unchanged 8x FY23E P/E, -0.5 standard deviation its 5-year mean.
- Bumitama Agri is a BUY given its single-digit P/E with >6% dividend yields.
2H22: Affected by lower ASPs and higher fertiliser
- - Read this at SGinvestors.io -
- The weaker y-o-y 2H22 core PATMI was mainly due to lower CPO ASP (-7% y-o-y), lower PK ASP (-27% y-o-y), and higher costs (especially fertilizer), mitigated by higher sales volume (+11% y-o-y) in tandem with higher 2H22 output (+21% y-o-y).
FY23: Bumitama Agri targets +3-7% y-o-y FFB growth
- Read more at SGinvestors.io.
