Uncertain outlook ahead for Bumitama Agri

SINGAPORE (Aug 8): RHB is maintaining its “neutral” rating on Indonesian oil-palm plantation Bumitama Agri, with a revised target price of 75 cents.

In a Monday report, the research house expects negative growth of 13.1% for the plantation, before recording an increase of 17-20% in FY17-18.

This comes as the plantation lowered its 2016 FFB output forecasts to –5 to –10%. While it expects a significant recovery in 2H16, Bumitama Agri is cautious on prospects in 2017, citing the secondary effect of El Nino.

---

Related Stories

• Bumitama triumphs in operational excellence
• Bumitama Agri makes leap from Centurion to BDC; Sheng Siong named for weighted ROE
• RHB raises CPO price assumptions, upgrades Bumitama to ‘buy’

---