0724 GMT - Bumitama Agri faces an earnings hit from likely higher unit costs, RHB Research's Singapore Research team says in a note. The palm oil producer's unit costs increased 13% on-year in 1Q, owing to more aggressive fertilization practices in the quarter, the team says. The Singapore-listed company expects unit costs to rise by 3%-5% in 2025, along with an increase in minimum wage, the team notes. RHB lowers its earnings estimates for Bumitama Agri by 6% for 2025, 3% for 2026, and 3% for 2027. It lowers the stock's target price to S$0.90 from S$1.00 with an unchanged buy rating. Shares are 2.6% higher at S$0.785. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
May 16, 2025 03:24 ET (07:24 GMT)
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