Bumitama Agri - RHB Invest 2024-08-12: Moderate ESG Score & Valuation

• The plantation industry is at the crossroads – with rising costs, falling yields, little chance for landbank expansion, where can growth come from? Planters now have to do much more to grow earnings – so is diversification the key? Bumitama Agri (SGX:P8Z) may not be able to diversify its earnings much via downstream ventures, but more can be done to improve its profit per ha.
• - Read this at SGinvestors.io -

Face the hard facts and adapt.

• With headwinds like lower yields, older trees, environmental pressures, higher costs, labour issues and lower profitability, the sector has to find ways to circumvent these. CPO prices have risen to highs unseen in the last 10 years, but there is always a risk that extenuating circumstances can push prices down to below breakeven cost levels.
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Diversification may be the name of the game, going forward.

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Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

Read also RHB's most recent report:
2025-11-14 Bumitama Agri - 3Q25 Earnings Weaken Q-o-q.

Previous report by RHB:
2025-09-22 Bumitama Agri - Valuations Now Fair Post Share Price Rerating.

Price targets by 3 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 Dividend Payout Dates & Corporate Actions,
Bumitama Agri News