- Downgrade Bumitama Agri to NEUTRAL from Buy, unchanged S$0.70 target price, 4% upside. 1Q24 results disappointed slightly on weaker-than-expected output.
- Given the Bumitama Agri share price performance of +18% over the last six months, we believe valuations are now fair.
1Q24’s results were slightly below expectations
- - Read this at SGinvestors.io -
9.2% y-o-y growth in CPO output
- - Read this at SGinvestors.io -
- Bumitama Agri is making no changes to its internal FFB growth target of 3-5% for FY24, expecting 2H output to recover strongly, while external FFB purchases should remain robust.
- To be conservative, we trim our nucleus FFB output growth assumption to 2.5% from 3.2% for FY24, but raise external FFB output to reflect 8-10% growth for FY24-26 from the prior 5%.
CPO ASP stronger q-o-q in 1Q24.
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-05-14
Previous report by RHB:
2024-02-28 Bumitama Agri - Inexpensive Pure Play With Good Dividend Yields.
Price targets by 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
