Broker Name: CGS International
Date of Report: November 14, 2025
Excerpt from CGS International report.
Report Summary
- Bumitama Agri’s 9M25 core net profit reached 63%/71% of CGS International/Bloomberg consensus full-year forecasts, in line with expectations. Strong 4Q25 earnings are anticipated due to recognition of delayed shipments and higher CPO prices.
- The company’s operations benefited from expanded milling capacity, efficient cost management, and increased third-party FFB purchases. Despite shipment delays in 3Q25, operating margins improved year-on-year, and dividend yield for FY26-27F is forecasted at an attractive 8–9%.
- Bumitama Agri demonstrates high earnings sensitivity to CPO prices due to its pure upstream focus. The stock correlates strongly with CPO prices and is rated “Add” with a target price of S\$1.70, reflecting upside potential from yield recovery and possible M&A activity.
- ESG performance is strong, with improved traceability, RSPO certification, and emissions reduction initiatives underway. Delays in EU regulations are not expected to significantly impact the company due to its compliance with international sustainability standards.
- Key risks include weather disruptions and changes in Indonesian policy affecting CPO prices.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgsi.com/
