Broker Name: CGS International
Date of Report: February 28, 2026
Excerpt from CGS International report.
- Report Summary:
- Bumitama Agri (BAL) is recommended as “Add” with an unchanged target price of S\$1.70, driven by strong earnings, record-high dividend payout, and attractive projected yields of 9-10% for FY26-27.
- Recent administrative charges in Indonesia have been resolved, with risks easing and no further charges expected, while strong mill utilisation and increased third-party FFB purchases support future sales volume and earnings growth.
- BAL’s ESG performance is improving, with higher certifications and reduced emissions, supported by ongoing sustainability initiatives and compliance with international standards.
- Key risks include weather disruptions and policy changes affecting CPO prices, but the company benefits from expanding downstream capacity and firm biodiesel demand.
- BAL stands out among Singapore-listed plantation stocks for its high dividend yields, robust financial metrics, and continued operational and sustainability progress.
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.cgs-cimb.com/
