The negative variance was mainly dragged by lower-than-expected production in 4QFY2022, higher cost of production, lower sales volume due to temporary logistic constraints in moving crude palm oil (CPO) from Kalimantan to Sumatera or Jawa, as well as higher dividend withholding tax y-o-y for 4QFY2022.
Analysts at UOB Kay Hian and RHB Group Research have cut their target prices for Bumitama Agri (SGX:P8Z
) to 55 cents and 66 cents respectively following the planter’s below-expectations FY2022 results.
In their March 2 note, UOBKH’s Jacquelyn Yow Hui Li and Leow Huey Chuen say Bumitama Agri’s FY2022 net profit at 3.12 trillion rupiah only accounts for 90% of their full-year assumption.
