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Bumitama Agri gets 'buy' calls as earnings expected to remain robust in FY22

Khairani Afifi Noordin
Khairani Afifi Noordin3/2/2022 10:11 AM GMT+08  • 3 min read
Bumitama Agri gets 'buy' calls as earnings expected to remain robust in FY22
Analysts at RHB Group Research and UOB Kay Hian have lifted their TPs to 90 cents and 85 cents respectively.
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Expecting earnings to remain robust in FY22, analysts at RHB Group Research and UOB Kay Hian Research have upgraded and kept their “buy” calls for Bumitama Agri (BAL) with higher target prices of 90 cents and 85 cents respectively.

With recent crude palm oil (CPO) prices continuing to spike, UOB KH analysts Leow Huey Chuen and Jacquelyn Yow Hui Li expect BAL to continue benefiting with the current Indonesia tender price hovering around INR17,000 per kg.

Meanwhile, RHB analysts note that BAL managed to achieve a higher average selling price of INR13,500 per kg in 4Q — a 55% increase y-o-y — resulting in a realised selling price of INR9,852 for FY21. For FY22, it has some minimal forward sales locked in a year ago which have yet to be realised, but the amount is insignificant.

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