- We note that Bumitama Agri's share price tends to trade in tandem with broader CPO prices, which came under some pressure in Jan 2025 following the December high. This was due to various factors – most notably lower demand as buyers shifted towards cheaper soybean oil, to which CPO traded at a rare premium for a large part of 4Q24.
Bumitama’s share price, alongside palm oil prices, have corrected from December highs.
- - Read this at SGinvestors.io -
- Going into 2025, benchmark CPO prices may continue to ease on higher production, with the Malaysian Palm Oil Board (MPOB) forecasting palm oil output in Malaysia to rise 4.2% y-o-y to 19.5m tons in 2025. Nonetheless, we expect CPO prices to remain elevated, supported by demand from the B40 biodiesel mandate in Indonesia, as well as Ramadan in the near term.
- - Read this at SGinvestors.io -
Fundamentals intact
- We leave our forecasts intact ahead of Bumitama Agri’s FY24 results, which are expected to be announced later this month. Thereafter, Bumitama Agri is also expected to declare a healthy dividend for the period, with Refinitiv consensus forecasting a 12-month forward dividend yield of 5.8% for the counter at the time of writing.
Upgrade to BUY
- Read more at SGinvestors.io.
Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.
Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2025-02-07
Read also OCBC's most recent report:
2025-02-27 Bumitama Agri - A Strong Finish To The Year.
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 Dividend Payout Dates & Corporate Actions,
Bumitama Agri News
