Bumitama

Bumitama: UOBK maintains Buy, upgrades TP to $1.28 from $1.10, factoring in higher EPS and raising target PE from 13x to 14x FY13e P/E, on par with the larger Spore peers. Believes the earnings upgrade is justified by better than expected FFB yield and oil extraction rate; believes Bumitama’s high growth and best in class yield justifies a higher PE multiple. Notes the recent acq of a 1415 ha landbank in central Kalimantan for US$105.5k indicates that mgt is not stopping to look for growth. This should assuage investors concerns that Bumitama will be running out of landbank for expansion due to its relatively aggressive planting progress.