- Bumitama Agri (SGX:P8Z)'s 3Q23 results beat our and street estimates. Key outperformance was its better-than-expected sales on net inventory drawdown and lower-than-expected fertiliser application.
- - Read this at SGinvestors.io -
- Following our revised EPS forecasts, Bumitama Agri remains a BUY with a higher target price of S$0.94 (previously S$0.89) on unchanged 8x FY23E P/E, -0.5 standard deviation its 5-year mean. BUY for its single-digit P/E with >7% dividend yields.
3Q23 results lifted by higher sales and low fertilising
- Bumitama Agri reported a 3Q23 headline PATMI of IDR874b (+33% y-o-y, +40% q-o-q), bringing 9M23 headline PATMI to IDR2,062b (-27% y-o-y) which met 93%/96% of our/consensus full-year estimates – above expectations.
- - Read this at SGinvestors.io -
- We understand fertilising application slowed in 3Q due to the dry weather as Bumitama Agri applied just 10-15% of its annual budget, bringing 9M23 fertiliser applied to 60-65% of annual budget.
- We understand 3Q headline profits was partly pulled down by some unrealized forex losses.
FFB nucleus output may just be flat y-o-y for FY23E
- Read more at SGinvestors.io.
