- Bumitama Agri (SGX:P8Z)'s 1Q23 headline PATMI met our/ consensus expectations. Headline PATMI were partly lifted by FX translation gain on its US$ debt (following IDR’s appreciation during the quarter).
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- Maintain BUY and target price of S$0.84 on 8x FY23E PER, -0.5 standard deviation its 5-year mean.
1Q23 results: Within our/ consensus expectations
- Bumitama Agri provided an executive summary of key financial and operational information on its 1Q23 performance. It reported a 1Q23 headline PATMI of IDR429b (-51% y-o-y) which met 20%/22% of our/consensus full-year forecasts.
- The weaker y-o-y results were underpinned by lower revenue (- 8% y-o-y), and higher fertiliser cost. We understand Bumitama Agri has completed 25- 30% of its full-year fertiliser plan in 1Q23, using fertiliser stocks it secured about 6 months ago when fertiliser prices were relatively higher.
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Anticipating output recovery in 2H
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