- 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.
- - Read this at SGinvestors.io -
Diversification may be the name of the game, going forward.
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-08-12
Read also RHB's most recent report:
2024-11-13 Bumitama Agri - Decent 3Q24 Net Profit Despite Output Drag; BUY.
Previous report by RHB:
2024-11-12 Bumitama Agri - Pure Planter With Inexpensive Valuations; Upgrade To BUY.
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 Dividends & Corporate Actions,
Bumitama Agri News Articles
