Singapore Stock Market News

Bumitama Agri - Output yet to peak

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Publish date: Fri, 14 Aug 2015, 02:17 PM
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■ 2Q15 earnings of Rp217bn were below expectations on annualised basis

■ Underperformance was caused by 14% y-o-y drop in CPO ASP, associate losses, and 16% y-o-y lower FFB yield 

■ FY15F/16F earnings cut by 14%/12% on lower CPO ASP assumptions (relative to spot) and slightly lower FFB yields 

Maintain BUY for 36% upside to revised TP of S$1.17; expect strong 3Q15 output to compensate weak CPO ASP
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