Bumitama Agri

Brokers Digest 908

CSE Global

Price targets:
69 cents BUY (DBS Group Research)
73 cents BUY (CGS-CIMB Research)
61 cents BUY (KGI Securities)
69 cents BUY (RHB Group Research)

The best is yet to come for CSE Global, say analysts, as the group garnered four “buy” calls across brokerages DBS Group Research, CGS-CIMB Research, KGI Securities and RHB Group Research.

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Bumitama’s chairman acquires shares, China Sunsine continues with buybacks

(Sept 16): The executive chairman and CEO of Bumitama Agri, a leading producer of palm oil and palm kernel, recently acquired 400,000 shares in the company.

Bumitama in a filing with the Singapore Exchange on Sept 9 said that Lim Gunawan Hariyanto bought the shares at a total cost of $232,960. This brings Lim’s total deemed interest in the plantation company to 52%, up from the previous 51.98%. The percentage in shareholding is calculated based on the company’s issued share capital of 1,737,497,044 ordinary shares (excluding treasury shares).

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Genting Singapore tops list; plantation companies' ROE remains high

SINGAPORE (Sept 16): Genting Singapore, operator of Resorts World Sentosa (RWS), has emerged the winner of the agriculture, hotels and restaurants sector. Companies in these three industries have been combined into a single sector, as there are not enough companies in each sector for a proper ranking. Although the businesses in each sector are different — which makes them difficult to compare — it is still possible to draw some conclusions about how they have been performing over three years.

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Bumitama willing to lead industry-wide sustainability efforts

SINGAPOER (Sept 16): It was a video that went viral across the world — an evocative tale of an orang utan that ends up “moving into” a little girl’s bedroom because its home in the forest had been destroyed by oil palm plantations. Commissioned by the environmental group, Greenpeace, in collaboration with the British supermarket chain, Iceland, the video was subsequently banned for being “too political”, but not before almost a million people had seen it on YouTube and Facebook between August and December last year.

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1H for Bumitama Agri was a huge miss; will 2H be better?

SINGAPORE (Aug 27): Shares in Bumitama Agri are currently trading at an all-time low at 58 cents. Year to date, the stock has fallen 14.9%.

In addition, the group’s latest 2Q19 results were rather lacklustre due to weak palm oil prices and lower sales volume. Low prices of vegetable oils and high stock level of palm oil had kept palm oil prices low.

Brokers slash estimates for Bumitama after 1Q disappointment, but say production remains strong

SINGAPORE (May 17): DBS Vickers Securities and UOB Kay Hian are maintaining their “buy” recommendations on Bumitama Agri Limited (BAL) with the respective price targets of 69 cents and 81 cents, even as the palm oil producer missed both research houses’ expectations with its latest set of quarterly results.

RHB Research, on the other hand, remains “neutral” on the stock while lowering its P/E based target price to 62 cents from 67 cents previously to reflect a 9% downside.  

Bumitama Agri on track for a better performance in FY19, say analysts

SINGAPORE (Feb 28): Maybank Kim Eng and RHB Research are maintaining their “buy” and “neutral” ratings on Bumitama Agri with higher target prices of 97 cents and 67 cents, respectively.

This comes after the oil palm plantation company concluded FY18 with earnings of $125 million, down 9% y-o-y as its 4Q and full-year performance was impacted by weaker agriculture commodity prices, especially in the latest quarter.

Bumitama Agri reports 9% fall in FY18 earnings to $125 mil on forex loss and fair value changes

SINGAPORE (Feb 26): Palm oil producer Bumitama Agri reported 4Q18 and FY18 financial performance were impacted by the weakening of the agriculture commodity prices, especially in the latest quarter.

However, the increase in sales volume was more than sufficient to offset the drop in selling prices in the 4Q18 and for FY18. Foreign exchange loss and loss on fair value changes in biological assets in FY18 also contributed to the decline of the group’s earnings by 9.0% to IDR 1.295 trillion ($125 million).

An unexciting 2019 ahead for Bumitama Agri

SINGAPORE (Dec 10): RHB Research is downgrading its recommendation on Bumitama Agri to “neutral” from “buy” with a lowered target price of 60 cents from 80 cents previously.

This came on the back of possible unexciting crude palm oil (CPO) prices in 2019, while downside risks are limited from hereon, as demand is picking up and inventory should start moderating in 1Q19.

Bumitama Agri unanimously rated 'buy' for potential undervaluation, bright outlook

SINGAPORE (Nov 13): Maybank Kim Eng, DBS Vickers Securities, RHB Research and UOB Kay Hian are maintaining their “buy” calls on Bumitama Agri with the respective price targets of 98 cents, 85 cents, 81 cents and 80 cents.

All four brokerages continue to like the stock for its positive near- to medium-term earnings outlook with the view that it is undervalued.

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