Bumitama Agri - Maybank Research 2023-11-15: 3Q23 Beat Expectations Yet Again; High Dividend Yields The Key Attraction

Bumitama Agri - 3Q23 Beat Expectations Yet Again; High Dividend Yields The Key Attraction

Bumitama Agri (SGX:P8Z) | SGinvestors.ioBumitama Agri (SGX:P8Z)
  • 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.

Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.

Ong Chee Ting CA Maybank Research | https://www.maybank-ke.com.sg/ 2023-11-15

Read also Maybank's most recent report:
2024-02-28 Bumitama Agri - FY23 Met Expectations; BUY For Its Consistently High Dividend Yields.

Price targets by 2 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


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