Bumitama Agri - RHB Invest 2024-05-14: Dragged By Weak Output; Downgrade To NEUTRAL

Bumitama Agri - Dragged By Weak Output; Downgrade To NEUTRAL

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


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