Stock Name: Bumitama
Company Name: BUMITAMA AGRI LTD.
DBS Vickers Securities in a May 24 research report says: "Bumitama Agri (Bumitama) has been aggressively planting/acquiring estates since 2004. Among Indonesian planters in our coverage, the group’s FY2012F own planted area of 98,581 ha is the fourth largest – 48% of which is immature. "It is poised to deliver 29.4% FFB output and 29% earnings CAGR between FY2011 and FY2014F. Following conversion of shareholder loan and strong earnings growth this year, ROE is projected to be 28.4-23.8% in CY12F-14F, translating to ROE-WACC spread of 14.1-9.5% over the same period. "We peg Bumitama’s target price at $1.35 per share, based on DCF valuation. This implies FY2012F and FY2013F PE of 15.7x and 12.3x, respectively. Compared to its 3-year earnings CAGR of 29%, Bumitama’s FY12F PEG ratio is estimated to be only 0.54x. BUY."
Company Name: BUMITAMA AGRI LTD.
| Research House: DBS Vickers | Price Call: BUY | Target Price: 1.35 |
DBS Vickers Securities in a May 24 research report says: "Bumitama Agri (Bumitama) has been aggressively planting/acquiring estates since 2004. Among Indonesian planters in our coverage, the group’s FY2012F own planted area of 98,581 ha is the fourth largest – 48% of which is immature. "It is poised to deliver 29.4% FFB output and 29% earnings CAGR between FY2011 and FY2014F. Following conversion of shareholder loan and strong earnings growth this year, ROE is projected to be 28.4-23.8% in CY12F-14F, translating to ROE-WACC spread of 14.1-9.5% over the same period. "We peg Bumitama’s target price at $1.35 per share, based on DCF valuation. This implies FY2012F and FY2013F PE of 15.7x and 12.3x, respectively. Compared to its 3-year earnings CAGR of 29%, Bumitama’s FY12F PEG ratio is estimated to be only 0.54x. BUY."
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