Bumitama Agri Faces Earnings Hit From Likely Higher Unit Costs -- Market Talk

Dow Jones
May 16

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)

Copyright (c) 2025 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10