Brokers' take

Bumitama Agri | Buy Target price: S$0.93 July 16 close: S$0.65 UOB Kay Hian, July 16

BUMITAMA Agri (BAL) is likely to outperform peers in Q2 2018 with a net profit of 360 billion rupiah to 400 billion rupiah (S$34.1 million to S$38 million), better quarter-on-quarter and year-on-year on the back of stronger fresh fruit bunch production.

Management has been putting in efforts to improve group fresh fruit bunch yield and BAL is starting to see a better fresh fruit bunch yield recovery and has sustained its high operating expense ratio despite high third-party fruit intake.