Nucleus fresh fruit bunches (FFB) output rose 8.2% y-o-y in 1QFY2026, above both RHB's 3% projection and management's own full-year guidance of 0%–5%. The report notes that while Bumitama expects FFB growth to pick up in the second quarter and peak in the third, management is keeping its full-year guidance unchanged (at 0%–5%) given an anticipated moderation in 4QFY2026. Crude palm oil (CPO) sales volume jumped 25% y-o-y on inventory drawdowns. RHB maintains its 2%–4% FFB growth forecast for FY2026–FY2027.
RHB Bank Singapore has upgraded Bumitama Agri from "sell" to "neutral" with an unchanged target price of $1.70, implying a downside of 6.6% to its share price of $1.82 as at its report dated May 13. Shares in the agri company had retreated 15% over the past two weeks. The bank's FY2026 dividend yield estimate of 5.6% is seen providing support at current levels, says the Singapore research team.
On May 12, Bumitama reported a core profit of IDR755 billion ($54.9 billion) for the 1QFY2026 ended March 31, down 26% q-o-q but 42.4% up y-o-y, making up 21%–24% of RHB's and consensus full-year estimates and broadly within RHB’s expectations. The quarter is typically the weakest in terms of seasonal output, notes the RHB team.
