“With the bulk of Indonesian planters posting stronger-than-expected numbers this quarter, the main differential that sets Bumitama apart is its high dividend payout ratio and yield,” says RHB, adding that the group upped its official payout ratio to at least 60% (from 50%) in 2024, and has been following through on this, paying out 64% of earnings in FY2024 and 50% in 1HFY2025 so far.
RHB Bank Singapore is keeping a “neutral” stance on Bumitama Agri with an increased target price of $1.10 from 88 cents previously.
“Bumitama Agri’s share price has risen significantly post-results, likely due to its continued high dividend payout. Although results were above expectations, this trend was similar to its Indonesian peers during the quarter,” says the Singapore research team in a Sept 22 report.
