Bumitama Agri’s valuations post earnings upgrade remain inexpensive, trading at 7.8x 2025F vs its peers’ range of 7-11x.
CPO prices continue rising; now at >MYR5,000/tonne (+15% in the past month).
- Read this at SGinvestors.io -
weather issues in South America resulting in slower-than-expected soybean planting progress in the initial few weeks of planting – although this has since caught up. This raised soybean oil prices by 14% in the last three weeks;
the Thai Government’s ban on palm oil exports until year-end to try to control rising prices of cooking oil. Although Thailand is not a huge producer or exporter of palm oil, this has affected sentiment;
(more speculative in nature) Donald Trump’s win in the US General Elections. In the 2016 election when Trump won, soybean and PO prices rallied 17% and 28% a few months before the election. Post election, prices rose further, by 10% and 11% to a peak of US$832/tonne and MYR3,306/tonne from end-2016 to early 2017.
Rest of 2024 to be susceptible to speculativeactivities, while fundamentals for 2025 are improving
Read more at SGinvestors.io.
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/.
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