- Bumitama Agri (SGX:P8Z)'s 1H23 core PATMI exceeded our and consensus expectations on higher-than-expected CPO ASP achieved. We believe 2H23 EPS are likely to be stronger on seasonally higher output and lower costs.
- - Read this at SGinvestors.io -
- BUY Bumitama Agri for its single-digit P/E with more than 7% dividend yields.
1H23 results: Beat our & consensus estimates
- Stripping aside unrealized FX gains of IDR136b, Bumitama Agri's 1H23 core PATMI was IDR1,053b (-54% y-o-y) which met 50%/58% of our/consensus full-year forecasts.
- - Read this at SGinvestors.io -
- There was also cost pressures in 1H23 owing to high fertilizer and fuel costs, and to a lesser extent increased G&A expenses (due to FY22’s performance bonus). We understand Bumitama Agri has completed about 50% of its full-year fertiliser plan in 1H23.
- Looking forward into 2H23, Bumitama Agri is poised to benefit from lower cost pressures as fertiliser and fuel prices have retreated recently.
Anticipating +22% ~ 33% h-o-h output recovery in 2H
- Read more at SGinvestors.io.
