Bumitama Agri 1H24 Results - Maybank Research 2024-08-14: Within Expectations; High Dividend Yield Of Above 6.5% Still Its Key Attraction

• Bumitama Agri (SGX:P8Z)'s 1H24 results were off to a decent start as seasonally low output was mitigated by higher ASPs and lower unit cost. We expect much stronger earnings in 2H24 on better output and lower unit cost.
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1H24: Weaker output compensated by higher ASPs

• Stripping aside unrealized FX loss of IDR108b, Bumitama Agri's 1H24 core PATMI was IDR941b (-11% y-o-y) which met 47%/45% of our/consensus full-year forecasts. The lower y-o-y results were due by lower FFB nucleus output (-16% y-o-y), mitigated by inventory drawdown (to boost sales) and higher CPO ASP (+2% y-o-y) and PK ASP (+11% y-o-y).
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• Bumitama Agri’s 1H24 unit cost remained manageable despite a 16% y-o-y decline in FFB nucleus due to lower fertiliser and fuel costs. By our estimate, its operating cost-to-customer was IDR5,909/kg (+5% y-o-y) in 1H24.

2H24: Expecting ~+30% h-o-h FFB output growth

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Ong Chee Ting CA Maybank Research | https://www.maybank-ke.com.sg/ 2024-08-14 SGinvestors.io

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