Bumitama Agri's Results Exceeded Our/consensus Expectations

• Bumitama Agri (SGX:P8Z)'s 9M21 headline/ core PATMI beat our/consensus expectations on better-than-expected CPO ASP and lower-than-expected cost.
• We expect 4Q21 EPS to be relatively good on elevated CPO ASPs.
• Bumitama Agri trades at just 6-7x PER with attractive dividend yields of ~6.0% (within its dividend payout policy of up to 40% of recurring profits).

Quarterly EBTIDA Surpassed IDR1tr for the First Time

• Based on an executive summary of key financial information of its 9M21 performance, Bumitama Agri reported a 3Q21 headline PATMI of IDR589b (+208% y-o-y, +86% q-o-q), bringing 9M21 headline PATMI to IDR1,073b (+70% y-o-y).
• Due the a lack of detailed disclosure, we have estimated Bumitama Agri's unrealised net FX loss at Rp30b which we then estimate its 9M21 core PATMI at IDR1,103b (+40% y-o-y); meeting 82%/94% of our/consensus full-year estimates.

Maintaining Our 10% FFB Growth for FY21

• Bumitama Agri's strong 3Q21 PATMI was underpinned by higher earlier growth guidance of 10-15% y-o-y.

Raising EPS Forecasts Mainly on Higher CPO ASP

• Following our industry-wide CPO ASP revisions to MYR4,300/t (from MYR3,500/t) for price on 11x FY22 PER, its updated 5-year mean (previously 12x FY22 PER).

Source: Maybank Kim Eng Research - 14 Nov 2021