- Bumitama Agri’s 1H23 results beat our and consensus expectations, thanks to its higher-than-peers CPO ASP and higher CPO production. 2H23 earnings may come in stronger h-o-h with higher CPO ASP and lower production cost.
- - Read this at SGinvestors.io -
- Maintain BUY on Bumitama Agri with a target price of S$0.65.
1H23 results above expectation.
- Bumitama Agri (SGX:P8Z)’s 1H23 earnings came in at Rp1,015b (+24% h-o-h, -56% y-o-y), accounting for 58% of our full-year forecast.
- - Read this at SGinvestors.io -
- 1H23 results came in higher h-o-h, due to:
- Higher-than-expected production and sales volume, especially in 2Q23. The higher-than-expected output was mainly supported by the 29% q-o-q rise in FFB yield and the improving oil extraction rates at 22.6% in 2Q23 (1Q23: 22.1%). We reckon that the strong FFB yield and OER improvement was mainly due to the better agro-management that led to better productivity.
- Higher-than-market CPO and PK ASP. Note that Bumitama Agri’s CPO ASP usually lags by 1-2 months due to the timing of delivery and hence Bumitama Agri’s 2Q23 CPO ASP outperformed its peers.
- Higher q-o-q net profit in 2Q23, thanks to higher FFB and CPO production which had increased by 30% and 8% respectively.
- Interestingly, Bumitama Agri’s CPO ASP had strengthened by 1% q-o-q to reach Rp11,756/kg in 2Q23, despite the market price of CPO dropping by 10% q-o-q.
Higher margin in 2H23.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jacquelyn Yow Hui Li UOB Kay Hian Research | Leow Huey Chuen UOB Kay Hian | https://research.uobkayhian.com/ 2023-08-14
Read also UOB's most recent report:
2024-05-15 Bumitama Agri - 1Q24 Results Within Expectations.
Previous report by UOB:
2024-02-28 Bumitama Agri - 2H23 results Within Expectations.
Price targets by 3 other brokers at Bumitama Agri Target Prices.
Listing of research reports at Bumitama Agri Analyst Reports.
Relevant links:
Bumitama Agri Share Price History,
Bumitama Agri Announcements,
Bumitama Agri Dividends & Corporate Actions,
Bumitama Agri News Articles