In FY2023 ended Dec 31, 2023, the analyst forecasts an average selling price (ASP) of IDR10,584 (91 cents) per kg and earnings of IDR1.6 trillion, which is down by 43% y-o-y but 38% higher than his previous estimate.
DBS Group Research analyst William Simadiputra has kept his “buy” call on Bumitama Agri (SGX:P8Z
) (BAL) as it is one of the few palm oil companies that is poised to benefit from a tight crude palm oil (CPO) supply outlook on the back of a limited expansion and rejuvenation in palm oil estates in Indonesia.
“BAL has exposure to Indonesia’s domestic CPO price trend, which is poised to recover in 2H2023 on recoverin demand and [in] 2024 on limited supply outlook driven by El Nino,” says Simadiputra, who also kept his target price unchanged at 90 cents. BAL’s well-run palm oil estates are expected to be minimally impacted by the weather, he adds.
